abfoster87 posted a question Sep 19, 2012 at 1:09pm
What is the most important function of money?

Store of value

Money supply

Medium of exchange

Unit of account
Which of the following statements regarding GNP and the L(R,Y) schedule is TRUE?

For a given level of nominal GNP, changes in interest rates cause movements along the L(R,Y) schedule.

For a given level of real GNP, changes in interest rates cause a decrease of the L(R,Y) schedule.

For a given level of real GNP, changes in interest rates cause an increase of the L(R,Y) schedule.

For a given level of real GNP, changes in interest rates cause movements along the L(R,Y) schedule.
Which one of the following statements is the MOST accurate?

A rise in the average value of transactions carried out by a household or a firm causes its demand for money to fall.

A reduction in the average value of transactions carried out by a household or a firm causes its demand for money to rise.

A rise in the average value of transactions carried out by a household or a firm causes its demand for money to rise.

A rise in the average value of transactions carried out by a household or a firm causes its demand for real money to rise.
Which of the following statements is TRUE regarding the aggregate real money demand schedule L(R,Y)?

It slopes upward because a fall in the interest rate raises the desired real money holdings of each household and firm in the economy.

It slopes downward because a fall in the interest rate reduces the desired real money holdings of each household and firm in the economy.

It has a zero slope because a fall in the interest rate keeps constant the desired real money holdings of each household and firm in the economy.

It slopes downward because a fall in the interest rate raises the desired real money holdings of each household and firm in the economy.
Money includes:

currency and coins.

investments.

deposits in the foreign exchange markets.

gold and other commodities.
Bill trades 3lbs of gold, in which he is invested, for cash. This money will be kept in his savings account for one year. Which role of money best describes Bill's money as it is used in this scenario?

Money as a unit of account

Money as a medium of exchange

Money as a measure of value

Money as a store of value
M1 is what the Federal Reserve calls the monetary aggregate, which refers to what?

Money supply

Aggregate money demand

Price level

Measure of supply
In a world with money and bonds only:

it is not risky to hold money.

it is risky to hold money.

risk is an important factor in the demand for money.

there is no relationship between risk and holding money.
Which of the following statements is TRUE regarding real output?

An increase in nominal output raises the interest rate while a fall in real output lowers the interest rate, given the price level and the money supply.

An increase in real output decreases the interest rate while a fall in real output increases the interest rate, given the price level.

An increase in real output raises the interest rate while a fall in real output lowers the interest rate, given the money supply.

An increase in real output raises the interest rate while a fall in real output lowers the interest rate, given the price level and the money supply.






answered the question Sep 19, 2012 at 2:19pm
Rating:
Questions Answered: 196
We can only answer your free 3 questions one at a time. You have two options to get your questions answered:...  View Full Answer