One reason that "near-monies" are important is because:
A. they do not reflect the level of consumer spending, but they have a critical impact on saving and investment in the economy.
B. they simplify the definition of money and therefore the formulation of monetary policy.
C. credit cards synchronize one's expenditures and income, thereby reducing the cash and checkable deposits one must hold.
D. they can be easily converted into money or vice versa, and thereby can influence the stability of the economy.
Answer: D
You might also like to view...
All of the following are examples of a sequential game except which one?
A) Checkers B) Tic-Tac-Toe C) Chess D) Rock-Paper-Scissors
A popular entertainer gives a concert in a 50,000 seat stadium. To give her fans a break, she charges only $50 a seat instead of the customary $75 a seat
At $75 a ticket, there would have been 50,000 tickets sold, and at $50, there are 80,000 people who want tickets. As a consequence of the generosity of the entertainer A) her fans are made better off. B) a more fair system of pricing the tickets has been found. C) another type of system will have to be found to allocate the tickets, making some of her fans better off and others worse off. D) her fans are made worse off since there is an excess demand of 30,000 tickets.
Someone is considered to exhibit risk-seeking behavior if he:
A. has a high willingness to take on situations with risk. B. has a low willingness to take on situations with risk. C. will only participate in high-risk situations. D. will always choose the riskier venture when given two choices.
Assuming the economy in the graph shown is currently at equilibrium A, if the government wanted to enact a policy it would likely enact:
A. expansionary fiscal policy in an effort to move aggregate demand to the right.
B. contractionary fiscal policy in an effort to move aggregate demand to the left.
C. expansionary fiscal policy in an effort to move aggregate demand to the left.
D. contractionary fiscal policy in an effort to move aggregate demand to the right.