When we say that money is fungible, we mean that a dollar spent out of your savings account:
A. is earmarked for a purpose and can't be spent on everyday expenses like groceries.
B. is exactly the same as a dollar spent from your checking account.
C. is not substitutable with any other dollar you have.
D. is worth more than the dollar you have in your pocket.
Answer: B
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"If the money supply rises by $1 billion, GDP will rise until it alone increases the quantity of money demanded by $1 billion." This describes the situation when
A) an IS curve shifts against a horizontal LM curve. B) an IS curve shifts against a vertical LM curve. C) a vertical LM curve shifts against an IS curve. D) a horizontal LM curve shifts against an IS curve.
Spending on imports should get _________ GDP, and spending on exports should be __________.
A. subtracted from; included B. included in; included as well C. subtracted from; subtracted as well D. included in; subtracted
Government intervention always results in the optimal mix of output.
Indicate whether the statement is true or false.
In which of the following cases can we be certain that a natural resource has become scarcer?
a. both the demand for the resource and the supply of the resource have increased b. both the demand for the resource and the supply of the resource have decreased c. demand for the resource is unchanged and the supply of the resource has increased d. the demand for the resource has decreased and the supply of the resource is unchanged