When money is used to purchase goods and services, it serves as a:
A. medium of exchange.
B. double coincidence of wants.
C. store of value.
D. unit of account.
Answer: A
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Some economists believe that inflation could actually help reduce unemployment in the short-run
a. True b. False Indicate whether the statement is true or false
A fixed cost is one that
a. increases only when output increases b. has already been paid c. does not vary with output d. diminishes over time e. cannot be recovered with profit
Diversification involves:
A. investing all your money in a variety of financial assets, with varying amounts of risk. B. investing all your money in one company. C. investing all your money in the same type of financial assets, with the same amount of risk. D. None of these statements is true.
A country running a current account deficit over a long time is likely to see its exchange rate:
A. the rate can rise, fall, or hold steady; the current account and the exchange rate are not linked. B. appreciate. C. hold steady. D. depreciate.