Are credit cards or debit cards money? Explain your answer
What will be an ideal response?
Neither credit cards nor debit cards are money. Credit cards are a type of ID card that, when presented, allow the owner to get an immediate loan. The loan is not money; indeed, it must be repaid using money. A debit card allows the customer to pay immediately for his or her purchase by transferring money from the customer's checking account to the seller's account. Debit cards are similar to checks insofar as they are essentially instructions to move money from one person to another. The funds transferred are money, the debit card is not money.
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Under a fixed exchange rate regime, if the domestic currency is initially overvalued, that is, below par, the central bank must intervene to purchase the ________ currency by selling ________ assets
A) domestic; foreign B) domestic; domestic C) foreign; foreign D) foreign; domestic
Which of the following is the most likely result of a contractionary gap?
a. Market forces will increase nominal resource costs in the long run b. Short run aggregate supply will shift to the left c. Market forces will lower nominal resource costs d. Wages will increase causing wage push inflation
In 1989 the United States passed a law against catching shrimp with nets that do not have turtle excluder devices. Four Asian countries filed a complaint with the Word Trade Organization (WTO), and it ruled that the U.S. policy violated WTO rules because
A. one nation could not impose moral values on other nations as per WTO rules. B. the policy did not apply equally to all exporting nations and did not recognize alternative ways to protect sea turtles. C. protection of sea turtles was not a legitimate environmental purpose. D. sea turtles were not on the endangered species list.
How do you interpret the value of cross-price elasticity?
What will be an ideal response?