People hold money primarily because it
a. increases in value when there is inflation.
b. serves as a store of value.
c. serves as a medium of exchange.
d. functions as a unit of account.
c
You might also like to view...
Assume the current interest rate on a one-year bond is 7%, and the interest rate investors expect on the one-year bond one year from now is 3%
According to the expectations hypothesis, the current interest rate (per year) on a two-year bond should be A) 3%. B) 5%. C) 7%. D) 10%.
The study of microeconomics and macroeconomics differ in that:
a. microeconomics is concerned with the domestic economy and macroeconomics is concerned only with the international economy. b. microeconomics examines the individual markets of the economy while macroeconomics studies the whole economy. c. microeconomics studies the actions of households and macroeconomics studies the actions of business firms. d. microeconomics examines the whole economy while macroeconomics studies the individual units of the economy.