The ease with which an asset can beSelect one:O a. converted into a medium of exchange determines the liquidity of that assetO b. converted into a store of value determines the liquidity of that assetOc. transported from one place to another determines whether or not that asset is a store of valueO d. traded for another asset determines whether or not that asset is a unit of account In 2009, Corny Company grows and sells $2 million worth of corn to Tasty Cereal Company, which makes cornflakes. Tasty Cereal Company produces $6 million worth of corn flakes in 2009, with sales to households duringthe year of $4.5 million. The unsold $1.5 million worth of corn flakes remains in Tasty Cereal Company'sinventory at the end of 2009. The transactions just described contribute how much to GDP for 2009?Select one:O a. $6.5 millionO b. $6 millionO . $4.5 millionO d. $8 million

Liquidity means how easy it is to use the asset to make purchases in the market. GDP = Consumption…

The ease with which an asset can be Select one: O a. converted into a medium of exchange determines the liquidity of that asset O b. converted into a store of value determines the liquidity of that asset Oc. transported from one place to another determines whether or not that asset is a store of value O d. traded for another asset determines whether or not that asset is a unit of account

The ease with which an asset can be Select one: O a. converted into a medium of exchange determines the liquidity of that asset O b. converted into a store of value determines the liquidity of that asset Oc. transported from one place to another determines whether or not that asset is a store of value O d. traded for another asset determines whether or not that asset is a unit of account

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter13: Monetary Policy: Conventional And Unconventional

Section: Chapter Questions

Problem 2TY

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