Answer:
High inflation :
B. makes money function less well as a store of value
Because with increase in inflation the value of money decreases and the price level increases. Basically inflation means decrease in the value of money.
High inflation O A. decreases uncertainty O B. makes money function less well as a store...
1. According to the classical dichotomy, when the money supply decreases, ______ will decrease. a. real GDP b. consumption spending c. the price level d. investment spending 2. In Zimbabwe in the 1990s the government resorted to printing money to pay the government employees because: a. it was a means to avoid price controls. b. of high rates of inflation. c. of declining tax revenues. D of a need to stimulate the economy. 3. To end a hyperinflation, a government...
Inflation imposes many costs on the economy: shoe-leather costs, money illusion, menu costs, wealth redistribution, price confusion, future price level uncertainty, and tax distortions. For each of the following statements, determine the associated cost. Be careful! Some of the statements may not go into any of the categories because two categories are missing.Items (7 items) (Drag and drop into the appropriate area below)Jim is reluctant to sell his stocks at the end of the year.The CEO of GM worries that his revenue received...
40) Ryan saved $50,000 last year so that he could buy asr.In this case, money served the4) function of a A) measure of inflation C) store of value B) unit of account D) medium of exchange 41) Which of the following is likely to be true when an economy is in a boom? 41) A) The size of the govermment expenditure multiplier is relatively small. B) The inflation rate is negative. C) The unemployment rate is high. D) The size...
(1)
If the world price is above the domestic equilibrium price, the
domestic country is likely to ____________________ the good.
(2)
The difference between what an economy sells to and buys from
foreigners is _________________.
(3)
The idea that exchange rates and prices adjust to equalize the
cost of living across international boundaries is called
__________________________.
(4)
In the graph below, when the world price is $3, how many units
are...
ition to make a b. technological knowledge. c. physical capital. d. human capital. [15]When we add up currency, demand deposits, other checkable deposits, and travelers checks, we get a. the money supply, as univernsally defined by economists b. the totality of common stores of value in the United States c. M1. [16] The Bureau of Labor Statistics defines the unemployment rate as the percentage of a. those unemployed relative to those employed. b. the labor force that is unemployed. c....
50. Which of the following best illustrates the medium of exchange function of money? O A. You keep some money hidden in your shoe. OB. You keep track of the value of your assets in terms of currency. O c. You pay for your double latte using currency. OD. You lend $25 to your friend. 51. Which of the following lists ranks assets from most to least liquid? O A. currency, fine art, stocks B. currency, stocks, fine art c....
The Question IS Which of these projects will actually be invested in? Which of the ones will people actually do? Investment and real interest rates The article is about how real interest rates drive planned investment. Think about the function investment as a function of real interest rates. Planned investment as a function of real interest rates. Talking about real interest rates, I'm really just talking about nominal interest rates factoring out or discounting what's going on with inflation. There...
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SPECIAL ARTICLES tole of Monetary Policy C Rangarajan What should be the objectives of monetary policy? Does the objective of price stability conflict with the goal of achieving...
3 ways to diversify retirement savings beyond stocks Reluctant to put more of your hard-earned money aboard the roller coaster known as the stock market? Then it may be a good idea to diversify your retirement savings with other assets, which can reduce your overall risk. Here are three alternative investments that could help you accomplish retirement savings diversification outside the stock market. Just like any investment, each one comes with risks that should be carefully considered before making any...
3 ways to diversify retirement savings beyond stocks Reluctant to put more of your hard-earned money aboard the roller coaster known as the stock market? Then it may be a good idea to diversify your retirement savings with other assets, which can reduce your overall risk. Here are three alternative investments that could help you accomplish retirement savings diversification outside the stock market. Just like any investment, each one comes with risks that should be carefully considered before making any...