As a unit of account, money is used
A) to hold purchasing power over time. B) to define prices of all other goods.
C) to pay off future debts. D) to exchange for goods and services.
B
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By and large, the price of each item on a restaurant menu is:
A) an accurate reflection of the item's marginal cost. B) based strictly on consumer demand. C) a function of cost and the price elasticity of demand for the item. D) a fixed multiple of the item's total cost.
If a country wants to keep its exchange rate fixed, it must
A) allow its currency value to vary with market supply and demand in foreign exchange markets. B) be a member of the IMF. C) vary the amount of its national currency supplied at any given exchange rate in foreign exchange markets when necessary. D) eliminate its foreign exchange reserves.