ec_Chapter 4

ec_Chapter 4 - Chapter 4 Name: _ Date: _ 1. The rate of...

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Chapter 4 Name: __________________________ Date: _____________ 1. The rate of inflation is the: A) median level of prices. B) average level of prices. C) percentage change in the level of prices. D) measure of the overall level of prices. 2. All of the following are considered major functions of money except as a: A) medium of exchange. B) way to display wealth. C) unit of account. D) store of value. 3. People use money as a store of value when they: A) hold money to transfer purchasing power into the future. B) use money as a measure of economic transactions. C) use money to buy goods and services. D) hold money to gain power and esteem. 4. Credit cards: A) are part of the M 1 money supply. B) are part of the M 2 money supply. C) are part of both the M 1 and M 2 money supply. D) may affect the demand for money 5. The definition of the transactions velocity of money is: A) money multiplied by prices divided by transactions. B) transactions divided by prices multiplied by money.
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ec_Chapter 4 - Chapter 4 Name: _ Date: _ 1. The rate of...

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