An item that people can use to transfer purchasing power from the present to the future is called()
A. a medium of exchange.
B. a unit of account.
C. a store of value.
D. None of the above is correct.
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Liquidity refers to()
A. the ease with which an asset is converted to the medium of exchange.
B. a measurement of the intrinsic value of commodity money.
C. the suitability of an asset to serve as a store of value.
D. how many time a dollar circulates in a given year.
The legal tender requirement means that()
A. people are more likely to accept the dollar as a medium of exchange.
B. the government must hold enough gold to redeem all currency.
C. people may not make trades with anything else.
D. All of the above are correct.
Suppose GDP is $8 trillion, taxes are $1.5 trillion, private saving is $0.5 trillion, and public saving is $0.2 trillion. Assuming this economy is closed, consumption is $ ______ trillion, government purchases are $______ trillion, national saving is $ ______ trillion, and investment is $ ______ trillion.
Suppose a country had a smaller increase in debt in 2006 than it had in 2005. Then other things the same, we’d expect ()
A. lower interest rates and investment in 2006 than in 2005.
B. lower interest rates and greater investment in 2006 than in 2005.
C. higher interest rates and greater investment in 2006 than in 2005.
D. higher interest rates and lower investment in 2006 than in 2005.
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