What is the most common reason people demand money?
A. Each bill and coin is a reflection of important people and events in a nation's history.
B. Since very few of us engage in a flow of transactions, money is our financial safety net.
C. People desire to use money as a medium of exchange when they buy goods and services.
D. They demand money to ensure that the nation's government will not spend too much.
Answer: C
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Only a market economy must answer the questions of what goods to produce, how to produce them, and for whom to produce them.
Answer the following statement true (T) or false (F)
The most direct way in which money eliminates the need for a double coincidence of wants is through its use as a medium of exchange
Indicate whether the statement is true or false
If the interest rate falls, the present value of $100 to be received in one year
A) rises. B) falls. C) is unaffected. D) might rise, fall, or not change.
What does it mean for a country to have a comparative advantage in producing a product?
What will be an ideal response?