Money serves as a unit of account when:
A. it is a basic measure of economic value.
B. there is a double coincidence of wealth.
C. it is used to purchase goods and services.
D. it is a means of holding wealth.
Answer: A
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Which of the following are consequences of inflation? a. It increases the burdens on people with fixed incomes when inflation is not anticipated
b. It hurts savers who did not anticipate how high the inflation was, but helps those who have borrowed at a fixed rate before the inflation became apparent. c. Inflation imposes costs on people who devote resources to protecting themselves from expected inflation. d. all of the above
The new classical economists are the __________________.
Fill in the blank(s) with the appropriate word(s).
Lottery winners who take the lump-sum payouts instead of payments spread out over many years:
A. believe the rate of return they could find in other financial assets is less than that implied in the extended payout. B. sacrifice free money and are making an economically irrational decision. C. prefer immediate to delayed returns. D. are only making a rational economic decision if there is rapid inflation.
The above table gives the government outlays and tax revenues from 2008 through 2012 for two countries. In 2010 country A had a ________ and country B had a ________
A) budget deficit; budget deficit B) budget deficit; budget surplus C) balanced budget; budget deficit D) budget surplus; budget surplus E) budget surplus; budget deficit