If lenders refuse to state the debt in terms of dollars, then dollars are not a
A) medium of exchange. B) unit of accounting.
C) store of value. D) standard of deferred payment.
D
You might also like to view...
The figure above shows the labor market in a region. In which of the following cases would the amount of unemployment be the largest?
A) when the market is at its equilibrium, with no minimum wage B) when a minimum wage of $4 an hour is imposed C) when a minimum wage of $6 an hour is imposed D) when a minimum wage of $8 an hour is imposed E) None of the above because the market will adjust so that there is no unemployment.
If people attempt to sell bonds because of excess money demand, then the interest rate will:
a. rise. b. fall. c. remain unchanged d. react unpredictably.
The supply of land being fixed, the earnings from land are called transfer earnings
a. True b. False Indicate whether the statement is true or false
Assume the exchange rate of the domestic currency is overvalued. What does the central bank need to do in order to keep the exchange rate fixed?
a. There is no need to intervene since the domestic currency is not undervalued. b. It needs to increase the money supply by raising the discount rate. c. It needs to sell the excess demand for foreign currency. d. It needs to buy the excess supply of foreign currency. e. It needs to decrease the money supply by lowering the discount rate.