Money solves the dilemma of a double coincidence of wants by serving as a
A) unit of account. B) medium of exchange.
C) symbol of value. D) store of value.
B
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Every year as the clock nears midnight on December 31st, the eyes of the world turn to Times Square in New York City to watch the famous ball drop at midnight
The event is open to everyone, but it is advised you arrive early to be able to participate because the square quickly becomes crowded with no space left for latecomers. This celebration is most like a A) common resource. B) public good. C) private good. D) natural monopoly.
What happens to aggregate demand if the demand for consumption goods decreases? If the demand for investment goods increases?
Answer the following statements true (T) or false (F)
1. The aggregate demand curve shows that when the price level rises, the quantity of real output demanded decreases. 2. An increase in the price level reduces the real value of financial assets with fixed money values and, as a result, the holders of these assets decrease their spending. 3. The real-balance and interest-rate effects help explain why aggregate demand might shift to the right or to the left. 4. An increase in real interest rates will increase investment and aggregate demand. 5. When the stock market crashed in 2008, the so-called reverse wealth effect caused consumer spending to decrease.
Refer to the information provided in Table 36.2 below to answer the question(s) that follow. Table 36.2 PointAggregate Income (Y)Aggregate Consumption (C) A 10 14 B 20 23 C 30 25 D 40 26 E 50 34 F 60 39The data in the table was used to estimate the following consumption function: C = 12 + 0.4YRefer to Table 36.2. Which of the following points is (are) the worst fit for the given consumption function?
A. A and D B. B and F C. C D. E