uy luneuh as a unit of account? Money has intrinsic worth as a comoodity Money i
ID: 1125482 • Letter: U
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uy luneuh as a unit of account? Money has intrinsic worth as a comoodity Money is convertible into commodities that have intrinsic worth e The price of all goods and services are measured in terms of money Bank accounts make it easy for people to store their wealth. QUESTION 12 The problems that inflation creates for society are caused primarily by greed on the part of sellers uncertainty regarding the rate at which different prices are increasing or will increase O governments actions to reduce the effects of inflation o greed on the part of union leaders QUESTION 13 Disposable income is $3,000, $4.000, and s6,000 over a three-year period, and consumption is $3000, s3,800, and $5.400 for the same three years The MPC is O 9333 80 different for each year QUESTION 14 People demand money O by selling their labor to get money by holding money to handle unexpected events and expenses () to perform transactions in the product market. all of the above QUESTION 15 An increase in the money supply generates an increase in the quanitty of the money demanded and a lower interest rate increases the level of planned investment leads to a higher level of GDP in current doliars all of the aboveExplanation / Answer
12) The problem of inflation is caused by the "Greed on the part of Union leaders". Inflation is nothing but increased cost, it can be cost-push inflation i.e. inflation due to increase in output prices.
13) The multiplier is "different for each year". In the first year it's 1 and from there it goes on decreasing.
14) People demand money by "all of the above-given reason". It is in exchange for labor, to handle unexpected events, and to perform transactions.
15) "All of the above" An increase in money supply will lower the interest rates, increase investments and increase the output hence increase GDP.
16) Reserve requirement is a "required ratio which the Financial banks and other financial institution must maintain with them."
17) Law of comparative advantage says that "the individual with lowest opportunity cost in producing a particular good should produce it"
18) Yes, comparative advantage is based on opportunity cost.
19) The economic question of what will be produced is faced by "every economy irrelevant to the fact that they are poor or rich or how they are organized".
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