Inflation impairs money's ability to do its job as a ______.
Fill in the blank(s) with the appropriate word(s).
store of value
You might also like to view...
Last year, the unemployment rate was 4 percent and the inflation rate was 3 percent. If the natural rate of unemployment is 3 percent, how do you expect inflation to change?
What will be an ideal response?
Two countries will have zero incentive to trade if their production possibilities curves are parallel straight lines because
A. One country has an absolute advantage in the production of both goods, thus providing that country with no incentive for trade. B. The opportunity costs for both countries are the same. C. One country has a comparative advantage in the production of both goods, thus providing that country with no incentive for trade. D. An intersection of the two lines is not possible, and therefore a trade equilibrium is not possible.
Explain the concept of diminishing returns.
What will be an ideal response?
When economists say that money serves as a store of value, they mean that it is:
A. a way to keep wealth in a readily spendable form for future use. B. a means of payment. C. a monetary unit for measuring and comparing the relative values of goods. D. declared as legal tender by the government.