Money cannot serve as a medium of exchange unless it also serves as a store of value. Is this statement true or false? Explain
What will be an ideal response?
This statement is true. If money does not hold its value over time, it will not be accepted in exchange for goods and services. I must be confident that money I accept today for a good or service rendered will be considered valuable tomorrow when I seek to trade it for a good or service. Lacking that confidence I will not accept money today.
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On the graph above, for a while after t = 0, the growth rate of output per worker is ________ the growth rate prior to time zero, and ________
A) below; rising B) below; falling C) above; constant D) above; falling
A firm has to decide between two projects that cost $10,000 each. Project A will provide a revenue $10,700 one year from now, while Project B will provide a revenue of $12,200 two years from now. The interest rate is 10% per year. This firm
A) chooses project A. B) chooses project B. C) rejects both projects. D) is indifferent between projects A and B.