Economics

What is the medium of exchange function of money?

What is the medium of exchange function of money?

What is the medium of exchange function of money?
 a. A common measurement of the relative value of different goods and services.
  b. The ability of money to hold value over time.
 c. The quality of money not to be hoarded because of

newstudent   20   3 Replies

Themanishere

Which of the following correctly describes the difference between commodity money and fiat money? ...

Which of the following correctly describes the difference between commodity money and fiat money? ...

Which of the following correctly describes the difference between commodity money and fiat money?
 a. Fiat money is only used in Italy, and is issued by a major Italian automobile manufacturer to support Italian schools.
  b. Commodity mon

fred213   31   3 Replies

kiavash

If consumption expenditures are 200 billion, total investment is 50 billion, government purchases ...

If consumption expenditures are 200 billion, total investment is 50 billion, government purchases ...

If consumption expenditures are 200 billion, total investment is 50 billion, government purchases are 40 billion, exports are 45 billion, imports are 40 billion, aggregate expenditures must be:
 a. 275 billion.
  b. 295 billion.
  c.

loverfly   24   3 Replies

sabiha

In the United States, the purchasing power of money is determined by:

In the United States, the purchasing power of money is determined by:

In the United States, the purchasing power of money is determined by:
 a. the underlying precious metals that back each unit of currency.
  b. the value of U.S. treasury bonds that back each unit of currency.
  c. its acceptability.

yushi   22   1 Reply

SweetMarie1998

The sum of consumption (C), investment (I), government spending (G), and net exports (X-M) is ...

The sum of consumption (C), investment (I), government spending (G), and net exports (X-M) is ...

The sum of consumption (C), investment (I), government spending (G), and net exports (X-M) is called:
 a. autonomous spending.
  b. aggregate expenditures.
  c. Keynesian income
  d. wealth.

QUESTION 2

Which

mfurness123   58   2 Replies

mfurness123

A country's imports of goods minus its exports of goods is reported in the goods balance.

A country's imports of goods minus its exports of goods is reported in the goods balance.

A country's imports of goods minus its exports of goods is reported in the goods balance.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 2

In the aggregate expenditures model, equil

bobo   54   2 Replies

bobo

Comparing how many dollars it takes you to run your car each year to annual earnings on a job ...

Comparing how many dollars it takes you to run your car each year to annual earnings on a job ...

Comparing how many dollars it takes you to run your car each year to annual earnings on a job instead of keeping track of costs in terms of gallons of gasoline and quarts of oil represents the use of money as a:
 a. means of payment.
  b.

Roshni411   22   3 Replies

mariabbas

Under a fixed exchange rate system, a government is at risk of running out of foreign currency ...

Under a fixed exchange rate system, a government is at risk of running out of foreign currency ...

Under a fixed exchange rate system, a government is at risk of running out of foreign currency reserves when the country's imports exceed its exports.
 a. True
  b. False
  Indicate whether the statement is true or false

QUE

AzureRanthos   34   3 Replies

bev

In the aggregate expenditures model, if aggregate expenditures (AE) are less than GDP, then:

In the aggregate expenditures model, if aggregate expenditures (AE) are less than GDP, then:

In the aggregate expenditures model, if aggregate expenditures (AE) are less than GDP, then:
 a. inventory is unchanged.
  b. inventory is depleted.
  c. employment increases.
  d. GDP decreases.

QUESTION 2

W

austinschwag   43   3 Replies

adavis

If people's incomes decrease, their demand for other currencies shifts to the right.

If people's incomes decrease, their demand for other currencies shifts to the right.

If people's incomes decrease, their demand for other currencies shifts to the right.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 2

In the aggregate expenditures model, if an econ

tarifa   33   2 Replies

tarifa

Which of the following is not an example of money used as a unit of account?

Which of the following is not an example of money used as a unit of account?

Which of the following is not an example of money used as a unit of account?
 a. A British pound is worth 3.00.
  b. Auto repairs were 3,000 last year.
  c. Business travel totaled 12,000 miles.
  d. Gasoline sells for 1.20 per g

Kennykeen15   29   2 Replies

Kennykeen15

What are the benefits and costs to a nation that participates in international trade? Do the ...

What are the benefits and costs to a nation that participates in international trade? Do the ...

What are the benefits and costs to a nation that participates in international trade? Do the benefits outweigh the costs or do the costs outweigh the benefits?

QUESTION 2

In the aggregate expenditures model, if aggregate expendit

Amazingorange   41   2 Replies

Amazingorange

The relationship between aggregate expenditures and disposable income is shown by the:

The relationship between aggregate expenditures and disposable income is shown by the:

The relationship between aggregate expenditures and disposable income is shown by the:
 a. aggregate expenditures curve.
 b. consumption function.
 c. investment curve.
 d. saving-disposable personal income curve.

QUEST

Alaynann   60   2 Replies

Alaynann

The sum of consumption and investment is:

The sum of consumption and investment is:

The sum of consumption and investment is:
 a. total production.
  b. aggregate supply.
 c. aggregate disposable demand.
  d. aggregate expenditures.

QUESTION 2

Credit cards are:
 a. M1 money.
  b.

ttardalo   34   1 Reply

nadiahoque14

The three functions of money are medium of exchange,

The three functions of money are medium of exchange,

The three functions of money are medium of exchange,
 a. measure of value, and standard of value.
  b. measure of value, and store of value.
  c. standard of value, and store of value
  d. medium of value, and store of value.

tarifa   27   2 Replies

tarifa

Which of the following assets is most liquid?

Which of the following assets is most liquid?

Which of the following assets is most liquid?
 a. Funds in a checking account.
  b. A car.
  c. A home.
  d. A municipal bond.

QUESTION 2

An economic system is the organizations and methods used to determine:

Sheta   27   2 Replies

Sheta

In the Keynesian model, investment, government spending, and net exports are treated as autonomous ...

In the Keynesian model, investment, government spending, and net exports are treated as autonomous ...

In the Keynesian model, investment, government spending, and net exports are treated as autonomous expenditures, which means they are independent of:
 a. expectations.
  b. the price level.
  c. political processes.
  d. real GDP

Sheko   38   3 Replies

velicanercan1

According to the Keynesian model, an economy will have persistent, high unemployment if:

According to the Keynesian model, an economy will have persistent, high unemployment if:

According to the Keynesian model, an economy will have persistent, high unemployment if:
 a. the government runs a budget deficit.
  b. markets operate freely.
  c. its total spending is too low.
  d. firms make too many investme

Duhitzlitzy   44   1 Reply

trissy15

The ease with which an asset can be converted into a medium of exchange is:

The ease with which an asset can be converted into a medium of exchange is:

The ease with which an asset can be converted into a medium of exchange is:
 a. currency convertibility.
  b. asset convertibility.
  c. convertibility.
  d. money convertibility.
  e. liquidity.

QUESTION 2

hbuedu   47   3 Replies

Luke

Gold is a perfect medium of exchange and measure of value because of its:

Gold is a perfect medium of exchange and measure of value because of its:

Gold is a perfect medium of exchange and measure of value because of its:
 a. divisibility, portability, and homogeneity.
  b. divisibility and durability.
  c. durability and relative scarcity.
  d. durability and homogeneity.

englishkarter   48   2 Replies

englishkarter

Which of the following is a desirable property of money?

Which of the following is a desirable property of money?

Which of the following is a desirable property of money?
 a. Scarcity.
  b. Portability.
  c. Divisibility.
  d. All of these.

QUESTION 2

Who was one of the first proponents of employing market economies inst

mmr53   30   3 Replies

KarlyMaxi

The economic systems of the former Soviet Union, the People's Republic of China, and Cuba are best ...

The economic systems of the former Soviet Union, the People's Republic of China, and Cuba are best ...

The economic systems of the former Soviet Union, the People's Republic of China, and Cuba are best classified as:
 a. traditional economies. b. command economies.
  c. market economies. d. decentralized economies.

QUESTION 2[

AzureRanthos   39   2 Replies

AzureRanthos

Which one of the following is the largest component of the money supply (M1) in the United States? ...

Which one of the following is the largest component of the money supply (M1) in the United States? ...

Which one of the following is the largest component of the money supply (M1) in the United States?
 a. Checkable deposits.
  b. Gold certificates.
  c. Credit cards and traveler's checks.
  d. Federal Reserve notes.

QUE

keant2   58   2 Replies

keant2

If the marginal propensity to consume (MPC) is 0.60, what is the spending multiplier?

If the marginal propensity to consume (MPC) is 0.60, what is the spending multiplier?

If the marginal propensity to consume (MPC) is 0.60, what is the spending multiplier?
 a. 0.4.
  b. 0.6.
  c. 2.5.
  d. 6.0.

QUESTION 2

Which of the following is not counted as part of M1?
 a. Coins.

ashleykali00   41   2 Replies

ashleykali00

The ratio of the change in GDP to an initial change in aggregate expenditures (AE) is the:

The ratio of the change in GDP to an initial change in aggregate expenditures (AE) is the:

The ratio of the change in GDP to an initial change in aggregate expenditures (AE) is the:
 a. spending multiplier.
  b. permanent income rate.
  c. marginal expenditure rate.
  d. marginal propensity to consume.

QUESTI

fairlykyle   32   2 Replies

fairlykyle

As the marginal propensity to consume (MPC) decreases, the spending multiplier:

As the marginal propensity to consume (MPC) decreases, the spending multiplier:

As the marginal propensity to consume (MPC) decreases, the spending multiplier:
 a. increases.
  b. decreases.
  c. remains constant.
  d. becomes indefinable.

QUESTION 2

Which of the following items is inclu

Marzard18   66   2 Replies

Marzard18

An economic system that answers the What, How, and For Whom questions using prices determined by the ...

An economic system that answers the What, How, and For Whom questions using prices determined by the ...

An economic system that answers the What, How, and For Whom questions using prices determined by the interaction of the forces of supply and demand is a:
 a. market economy. b. command economy.
  c. traditional economy. d. none of these.[b

pretty_yas   41   2 Replies

pretty_yas

By definition, M1 includes: (Multiple Choice)

By definition, M1 includes: (Multiple Choice)

By definition, M1 includes:
 a. savings accounts.
  b. money market mutual accounts.
  c. small denomination time deposits.
  d. checkable deposits.

QUESTION 2

According to Adam Smith, the invisible hand refe

av   66   3 Replies

Brarg

In Adam Smith's competitive market economy, the question of what goods to produce is determined by: ...

In Adam Smith's competitive market economy, the question of what goods to produce is determined by: ...

In Adam Smith's competitive market economy, the question of what goods to produce is determined by:
 a. the invisible hand of the price system.
  b. businesses.
  c. unions.
  d. the government, through laws and regulations.
[

mfurness123   34   3 Replies

anthber

Adam Smith's book, The Wealth of Nations, was published at the time of the:

Adam Smith's book, The Wealth of Nations, was published at the time of the:

Adam Smith's book, The Wealth of Nations, was published at the time of the:
 a. War of 1812 b. U.S. Declaration of Independence.
  c. U.S. Civil War. d. Great Depression.

QUESTION 2

If the marginal propensity to save (

Alaynann   54   1 Reply

Chefiegal

Economists who prefer a broader definition of money prefer the:

Economists who prefer a broader definition of money prefer the:

Economists who prefer a broader definition of money prefer the:
 a. M4 measure of the money supply to the M1 measure.
  b. M2 measure of the money supply to the M1 measure.
  c. M3 measure of the money supply to the M2 measure.
 

anu30   50   3 Replies

Ludeactionz

The spending multiplier is defined as:

The spending multiplier is defined as:

The spending multiplier is defined as:
 a. the ratio of the change in equilibrium output to the initial change in spending.
  b. the change in initial spending divided by the change in personal income.
  c. 1 / (marginal propensity to

Vhansen02   19   2 Replies

BryGuy10

According to Adam Smith, what is the primary source of a nation's wealth?

According to Adam Smith, what is the primary source of a nation's wealth?

According to Adam Smith, what is the primary source of a nation's wealth?
 a. The amount of gold and silver in the government's possession.
  b. A spirit of cooperation in which people share according to their means.
  c. Strong centr

yjiang5   31   3 Replies

sabiha

M2 money includes all but which one of the following?

M2 money includes all but which one of the following?

M2 money includes all but which one of the following?
 a. Checkable deposits.
  b. Savings accounts.
  c. Large denomination time deposits.
  d. Money market deposit accounts.
  e. Money market mutual accounts.

QUE

FakeUser   32   2 Replies

FakeUser

The economic system in which the basic economic questions are answered through markets with some ...

The economic system in which the basic economic questions are answered through markets with some ...

The economic system in which the basic economic questions are answered through markets with some government intervention is a:
 a. command economy. b. mixed economy.
  c. market economy. d. planned economy.

QUESTION 2

IRIS123456   45   2 Replies

IRIS123456

Suppose you transfer 1,000 from your checking account to your savings account. How does this action ...

Suppose you transfer 1,000 from your checking account to your savings account. How does this action ...

Suppose you transfer 1,000 from your checking account to your savings account. How does this action affect the M1 and M2 money supplies?
 a. M1 and M2 are both unchanged.
  b. M1 falls by 1,000 . and M2 rises by 1,000.
  c. M1 is unch

PRiiNNCE   34   2 Replies

PRiiNNCE

If 30 billion in new investment was added to the economy and MPC was 0.90, real GDP would increase ...

If 30 billion in new investment was added to the economy and MPC was 0.90, real GDP would increase ...

If 30 billion in new investment was added to the economy and MPC was 0.90, real GDP would increase by:
 a. 30 billion.
  b. 90 billion.
  c. 100 billion.
  d. 210 billion.
  e. 300 billion.

QUESTION 2

Th

ttardalo   27   2 Replies

ttardalo

Decisions to buy or sell securities at the Fed are made by the:

Decisions to buy or sell securities at the Fed are made by the:

Decisions to buy or sell securities at the Fed are made by the:
 a. Congress.
  b. Federal Open Market Committee.
  c. Federal Deposit Insurance Corporation.
  d. President's Council of Economic Advisors.

QUESTION 2

grodriguezz   17   1 Reply

Kim12345678900

Members of the Federal Reserve Board of Governors serve one nonrenewable term of:

Members of the Federal Reserve Board of Governors serve one nonrenewable term of:

Members of the Federal Reserve Board of Governors serve one nonrenewable term of:
 a. 4 years.
  b. 7 years.
  c. 14 years.
  d. life.

QUESTION 2

Which of the following is a criticism of capitalism?
 a.

crage   34   1 Reply

bik_e23

An economic system characterized by private ownership of the factors of production and economic ...

An economic system characterized by private ownership of the factors of production and economic ...

An economic system characterized by private ownership of the factors of production and economic activity coordinated through a system of markets and prices is called:
 a. capitalism. b. socialism.
  c. communism. d. none of these.

[

kingpulley29   43   2 Replies

kingpulley29