The precautionary demand for money is when people hold money
A) as a medium of exchange. B) for the interest it yields.
C) to meet unplanned expenditures. D) as a store of value.
C
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Deposit insurance is a system in which the government guarantees that:
A. people can have deposits at commercial banks. B. commercial banks will not lose any deposits. C. depositors will not lose any money even if their bank goes bankrupt. D. commercial banks will not go bankrupt.
Workers at a local construction company are paid $32.50 per hour, and they have incorporated a 4 percent annual raise in their contracts to account for expected inflation
Explain how unexpected inflation of 2 percent will affect the real wages earned by these workers and the unemployment rate of these workers.
Which of the following variables is likely to serve as an intermediate target for monetary policy?
A) Money supply B) Inflation rate C) Open-market operations D) Unemployment rate
Refer to the information provided in Table 30.2 below to answer the question(s) that follow.
Table 30.2
Refer to Table 30.2. From 2016 to 2017 the real wage
A. rises. B. falls. C. stays the same. D. rises then falls.