Answer the following statements true (T) or false (F)
1. When you use money to purchase groceries, money is functioning as a store of value.
2. Money performs its function as a store of value very well, because it protects one against the erosion of purchasing power from inflation.
3. With token money, the face value is greater than the intrinsic value.
4. The M1 money supply is composed of currency, checkable deposits, and savings deposits.
5. Credit card balances are part of money supply M2.
1 False
2. False
3. True
4. False
5. False
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In order to change inflationary expectations in 1979, the Fed's monetary policy under Paul Volcker's leadership resulted in ________ and ________
A) steep inflation; low unemployment B) deflation; high unemployment C) disinflation; low unemployment D) disinflation; high unemployment E) steep inflation; high unemployment
The government's $168 billion plan to stimulate the softening economy in 2008 failed partly because the tax cuts were temporary
a. True b. False Indicate whether the statement is true or false