Money serves as ________. A) a unit of account B) a store of value C) a medium of exchange D) all of the above E) none of the above ANSWER D
Date: September 10th, 2020
The adverse consequences of debt deflation are most evident ________. A) in the expansion of credit to high-risk borrowers B) on the balance sheets of nonfinancial businesses C) in a sharp decline in the real interest rate D) on the balance sheets of financial businesses ANSWER B
Date: September 10th, 2020
Increased liquidity in the banking system occurs when ________. A) people buy more bonds B) the demand for real money balances declines C) banks buy more bonds from the central bank D) all of the above E) none of the above ANSWER E
Date: September 10th, 2020
Wealth ________. A) may serve the monetary function of store of value B) means essentially the same as money C) differs from money in that wealth is more liquid D) is the flow that corresponds to the stock of income E) none of the above ANSWER A
Date: September 10th, 2020
Typically, central banks increase the supply of money by ________. A) buying bonds from banks B) printing currency C) directing the government to issue more money to banks D) all of the above E) none of the above ANSWER A
Date: September 10th, 2020
In the period from 1929 through 1933, there were successive ________ in aggregate demand and ________ in short-run aggregate supply. A) increases; decreases B) decreases; increases C) decreases; no change D) increases; increases ANSWER B
Date: September 10th, 2020
In the monetary small open-economy model, a fixed exchange rate insulates the domestic price level from A) both real and nominal shocks from abroad. B) real shocks from abroad, but not nominal shocks from abroad. C) nominal shocks from abroad, but not from real shocks from abroad. D) neither real nor nominal shocks from abroad. […]
Date: September 10th, 2020
Money is not ________. A) income because the former is a stock measure and the latter a flow B) wealth because the former is generally used to procure the latter C) as inefficient as barter because the latter requires a double coincidence of wants D) all of the above E) none of the above […]
Date: September 10th, 2020
The demand for real money balances ________. A) is downward sloping with respect to prices B) is downward sloping with respect to interest rates C) is downward sloping with respect to income D) all of the above E) none of the above ANSWER B
Date: September 10th, 2020
Money is ________. A) an asset B) a unit of measure C) a tool D) all of the above E) none of the above ANSWER D
Date: September 10th, 2020
