Why are time deposits and savings accounts referred to as near money assets?
a. They cannot be used to pay for something directly but can be quickly converted to money.
b. They have not been officially declared to be money by the government but can still be used to pay for things.
c. They contain the money that banks must hold in reserve.
d. They earn interest, and thus are nearly always increasing in value.
a. They cannot be used to pay for something directly but can be quickly converted to money.
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Refer to Figure 2-10. In the circular flow diagram, economic agents M represent
A) product markets. B) firms. C) factor markets. D) households.
If you are living in a period of continued high inflation on a fixed income, the cost of the goods and services you buy ____ and your nominal income ____
a. decreases, decreases b. increases, increases c. decreases, remains the same d. increases, remains the same
According to data on GDP growth between 1980 and 2010,
a. poor nations stagnated, while the rich nations continued to grow. b. poor nations grew rapidly, while the rich nations stagnated. c. most of the world's rapidly growing countries were located in Africa. d. many poor nations grew more rapidly than wealthy nations, while others continued to stagnate.
After its reforms in the late 1970s, China followed a policy of
a. Nationalization of all enterprises b. export of technology c. free economic zones d. import substitution e. industrial planning