Answered: Which one of the following statements…

Which one of the following statements is NOT true? (a) Money is the most liquid asset. (b) Money is a store of value. (c) Money is a unit of account. (d) Money is another term for income.

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter16: Monetary Policy

Section: Chapter Questions

Problem 1SQP

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Question

Which one of the following statements is NOT true?
(a) Money is the most liquid asset.
(b) Money is a store of value.
(c) Money is a unit of account.
(d) Money is another term for income.
Q.1.6 Which of the following will cause the demand curve for money to shift to the right?
(a) An increase in real Gross Domestic Product (GDP).
(b) A decrease in the repo rate.
(c) An increase in the quantity of money available.
(d) A decrease in the quantity of money available.
Q.1.7 A budget deficit occurs when:
(a) there is an increase in taxation.
(b) government spends less than is generated by taxation.
(c) government spending is very high.
(d) Government spends more than is generated by taxation.

Rules by which an authority (usually a government) imposes a financial obligation on individuals or organizations within its domain. Property or transactions can be taxed. While taxes are primarily intended to fund the operation of a government, many tax laws are created to encourage or discourage certain behaviors by citizens or companies.

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