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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"Taxes are what we pay for a civilized society." This statement was made by
A) Herbert Hoover. B) Franklin Roosevelt. C) Oliver Wendell Holmes. D) Adam Smith.
An example of nondiscretionary policymaking is
A. a rule under which the Fed targets the inflation rate. B. a Congressional tax-rate cut aimed at boosting real GDP. C. changes in the interest rate initiated by the Fed. D. expansionary fiscal policy.