To the extent that the value of money is less predictable, it becomes
A) more acceptable as a store of value.
B) less acceptable as a medium of exchange.
C) more acceptable as a standard of deferred payment.
D) more acceptable as a unit of account.
Ans: B) less acceptable as a medium of exchange.
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In order to lower the federal funds rate, the Fed ________ government securities in open market operations, so that banks' reserves ________ and the quantity of money ________
A) buys; increase; increases B) sells; increase; decreases C) buys; decrease; increases D) buys; decrease; decreases E) sells; decrease; decreases
By 1967, how did television coverage of the war in Vietnam influence the American public's opinion about this conflict?
A) Scenes of human suffering and devastation convinced the public that the Johnson administration's moral justification of U.S. involvement in Vietnam as a defense of freedom and democracy was no longer true. B) Americans were angered at the Communist victories of the North Vietnamese troops and Vietcong guerrillas and this led them to support the war as a struggle to defeat Communism. C) Americans continued to put their trust in President Johnson and were convinced that the end of the war was in sight. D) Network news largely ignored the conflict in Vietnam, so the American public was unaware of what was taking place there.
If the unemployment rate falls below its long-run level, which policies would be appropriate to stabilize output?
a. increase the money supply, increase taxes b. increase the money supply, cut taxes c. decrease the money supply, increase taxes d. decrease the money supply, cut taxes
The monopolistically competitive seller maximizes profit by producing at the point where:
A. total revenue is at a maximum. B. average costs are at a minimum. C. marginal revenue equals marginal cost. D. price equals marginal revenue.