Which of the following illustrates the store-of-value function of money?
A) writing a check to buy a new Volkswagen
B) noting that the price of a $20,000 Volkswagen is 16,000 euros
C) agreeing to repay a bank $400 a month for the next 48 months for a loan to buy a new Volkswagen
D) keeping $20,000 in cash in your mattress instead of buying a new Volkswagen
Ans: D) keeping $20,000 in cash in your mattress instead of buying a new Volkswagen
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The ERM crisis in ______ affected the ability of nations to ______.
A) 2001; fully fund their military forces B) 1996; allow labor to migrate between nations C) 1980; maintain a healthy banking system D) 1992; maintain fixed exchange rates without drastic domestic measures
The term "relative price" is used to refer to how the current price of a good or service compares to the price of the same item in the previous time period
Indicate whether the statement is true or false