Moving to the next question prevents changes to this answer.Question 18Say's Law applies only in a:O a. Money economy because of paper currencyO b. To an economy based on the Gold StandardO c. Barter economy because Qd tends to equal Qs in the long-rund. Money economy because excess money can occur due to investments and savings

Say's Law of Markets is theory from classical economics contending that the capacity to purchase…

Moving to the next question prevents changes to this answer. Question 18 Say's Law applies only in a: O a Money economy because of paper currency b. To an economy based on the Gold Standard c. Barter economy because Qd tends to equal Qs in the long-run d. Money economy because excess money can occur due to investments and savings

Moving to the next question prevents changes to this answer. Question 18 Say's Law applies only in a: O a Money economy because of paper currency b. To an economy based on the Gold Standard c. Barter economy because Qd tends to equal Qs in the long-run d. Money economy because excess money can occur due to investments and savings

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Classical Macroeconomics And The Self Regulating Economy

Section9.1: The Classical View

Problem 1ST

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Which of the following statements is true? O The necessary condition required for money to function as a medium of exchange is that it also needs to be a store of value. O The hours of labor that go into producing a product are a better unit of account than paper money. OOne of the limitations of using money is that it does not allow for the transfer of purchasing power into the future. OWhen money is used as a yardstick to describe the price of various goods and services, it serves as a store of value.
The higher and more unpredictable the changes in the monetary unit, the A. lower the opportunity cost of using it as a medium of exchange. B. lower the opportunity cost of using it as a store of value. C. higher the opportunity cost of using it as a store of value. D. less likely barter exchange will replace it. E. lower the opportunity cost of using it as a standard of deferred payment. O A OB с OD OE
What makes barter incapable of doing credit payments? O a. Coincidence of wants O b. Common unit of measure O c. Impossibility of future payments O d. Difficulty in storing
In a barter system, we would see Select one: O a. many different units of money. Ob. wide-spread depository institutions. Oc. money and goods exchanged for each other. O d. goods traded directly for other goods and services.
. Three goods are produced in an economy by three individuals:Good ProducerApples Orchard ownerBananas Banana growerChocolate ChocolatierIf the orchard owner likes only bananas, the bananagrower likes only chocolate, and the chocolatier likesonly apples, will any trade between these three personstake place in a barter economy? How will introducingmoney into the economy benefit these three producers?
Money overcomes the problem of a double coincidence of wants inherent in the barter system through its function as a O A. medium of exchange B. unit of account standard of deferred payment O D. store of value
Fiat money has Select one: a. value, because it can be redeemed for gold by the central bank. O b. little to no intrinsic value but is backed by the quantity of gold held by the central bank. C. a great intrinsic value that is independent of its use as money. O d. little to no intrinsic value and is authorized by the central bank or governmental body. Clear my choice Fini
The characteristic of money as a store of value implies: a. Money will remain valuable from one day to the next O b. None of the Above O C. Money allows us to quote prices and record debt O d. Money is acceptable as payment for goods and services
The value of money depends on which of the following factors? O a. The durability of the bills O b. The weight of the coin Ос. The price level O d. The previous metal used to mint the coin
An increase in the demand for non-monetary gold causes the money to O demand for; increase supply of; increase demand for; decrease O supply of; decrease
The Bank of Canada is owned by the federal government. O a. True Ob. False
Suppose that a bank with no excess reserves receives a deposit into a checking account of $8,000 in currency. If the required reserve ratio is 0.20, what is the maximum amount that the bank can lend out? Select one: OA $1,600 O B. $6,400 OC $8,000 O D. $40,000