When Starbucks accepts your $10 bill for two Grande Lattes and one Tall Caramel Macchiato, the $10 bill serves as a
A) medium of exchange.
B) store of value.
C) standard of value.
D) commodity money.
A
You might also like to view...
An increase in a family’s income will cause its budget line to
A. become steeper. B. become flatter (less steep). C. move closer to the origin. D. move away from the origin. E. become more convex toward the origin.
If an economy is experiencing both full employment and price stability, within the Keynesian model, a major tax reduction probably would cause
a. an increase in unemployment in the near future. b. an increase in the general level of prices unless government expenditures are also reduced. c. an increase in the interest rate since individuals will reduce their savings in response to the tax cut. d. a decrease in consumption unless the expected budget deficit is financed by selling bonds to foreigners.
If Carmen's Coffee Company wants to increase total revenue and the price elasticity of demand is 0.43, the company should
A. Increase the price of its coffee. B. Decrease the price of its coffee. C. Advertise since this is the only option that will increase total revenue. D. Keep the price constant since a price increase or decrease will cause total revenue to fall.
Which of the following is a noncash transfer?
A. A payment to a divorced mother under TANF. B. SNAP (food stamps). C. A social security payment to a retiree. D. Unemployment compensation benefits.