a) Which of the following is not true?In a monetary economy, economic goods and services have both a relative price and nominal priceIn a barter economy, nominal price inflation is possibleAggregate supply and Aggregate demand curves determine the price levelIf the nominal interest rate is below the real rate of interest, deflation of nominal prices is expected in the futureIt is logically possible for the nominal price of every economic good and service to increase b) Which of the following not true with respect to money?Money evolved from barter exchangeMoney solves the “double co-incidence” of wants problemMany economic goods have served as money including livestock, tobacco, and furs or skinsPaper money originated in Europe in 1641 because of legal tender lawsThe first coins were minted in the Kingdom of Lydia 650 BC

Relative Price - The price of goods and service comparison in terms of other commodities is called…

Answered: a) Which of the following is not true?…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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a) Which of the following is not true?

In a monetary economy, economic goods and services have both a relative price and nominal price
In a barter economy, nominal price inflation is possible
Aggregate supply and Aggregate demand curves determine the price level
If the nominal interest rate is below the real rate of interest, deflation of nominal prices is expected in the future
It is logically possible for the nominal price of every economic good and service to increase

b) Which of the following not true with respect to money?

Money evolved from barter exchange
Money solves the “double co-incidence” of wants problem
Many economic goods have served as money including livestock, tobacco, and furs or skins
Paper money originated in Europe in 1641 because of legal tender laws
The first coins were minted in the Kingdom of Lydia 650 BC

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