Which of the following must be true of a commodity for it to be used as money?
a) Its value must be easy to determine.
b) It must not be divisible.
c) It must not be durable.
d) It must not be readily accepted by many people.
Ans: a) Its value must be easy to determine.
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The nominal interest rate approximately equals which of the following?
A) the real interest rate minus the inflation rate B) the real interest rate plus the inflation rate C) the real interest rate minus the growth rate of real GDP D) the real interest rate plus the growth rate of real GDP
In the socialist controversy
a. Marx demonstrated the superiority of capitalism b. Marx demonstrated the superiority of socialism c. Keynes showed that capitalism was unstable d. Hayek and Mises argued that socialism would be inefficient e. Kornai talked about soft budgets