List and define the three functions of money
What will be an ideal response?
The three functions of money are a medium of exchange, a unit of account, and a store of value. A medium of exchange is an object that is generally accepted in exchange for goods and services. A unit of account is an agreed upon measure for stating the prices of goods and services. A store of value is anything that can be held and later exchanged for goods and services. Money serves all three of these functions.
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If the government purchases multiplier equals 2, and real GDP is $14 trillion with potential real GDP $14.5 trillion, then government purchases would need to increase by ________ to restore the economy to potential real GDP
A) $7.25 trillion B) $1 trillion C) $500 billion D) $250 billion
Strategic trade policy requires ALL of the following EXCEPT
A) subsidies set before output levels. B) non-retaliation of the trading partner. C) credible actions on the part of the subsidizing government. D) incomplete information on the part of the government.