If something is to be considered as money, it has to fulfill
A. all three functions
B. all four functions
Ans: B. all four functions
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One major criticism of giving foreign aid to developing countries is:
A. the recipients of aid oftentimes have nebulous goals that are not measurable. B. there is little to no accountability once the funds have been dispensed. C. much of the money may be embezzled or otherwise funneled away from its intended recipient. D. All of these are major criticisms of foreign aid.
In response to significant economic problems, the Obama administration recommended
a. more tax cuts. b. increased government spending. c. substantial aid to state and local governments. d. all of the above
A country sells more goods and services to foreign countries than it buys from them. It has
a. a trade surplus and positive net exports. b. a trade surplus and negative net exports. c. a trade deficit and positive net exports. d. a trade deficit and negative net exports.
Use the following graph to answer the next question.
In the graph, Dt is the transactions demand for money, Dm is the total demand for money, and Sm is the supply of money. The market is in equilibrium at the 6% rate of interest. If the money supply then decreases as shown, the transaction demand for money will change by
A. $0. B. $75. C. $175. D. $125.