In the circular-flow diagram, the goods markets are where: (a) The households purchase goods from firms; (b) Firms purchase goods from government; (c) Firms purchase goods from households; (d) The government purchases goods from households. Q.1.3 Money overcomes the problem of a double coincidence of wants inherent in the barter system through its function as a: (a) unit of account. (b) store of value. (c) medium of exchange. (d) standard of deferred payment. Q.1.4 The ________ demand for money arises out of the need to hold money as a medium of exchange. This demand for money is a function of ________. (a) precautionary; interest rates (b) transactions; national income (c) speculative; interest rates (d) precautionary; national incom
Q.1.2 In the circular-flow diagram, the goods markets are where:
(a) The households purchase goods from firms;
(b) Firms purchase goods from government;
(c) Firms purchase goods from households;
(d) The government purchases goods from households.
Q.1.3 Money overcomes the problem of a double coincidence of wants inherent in the barter system through its function as a:
(a) unit of account.
(b) store of value.
(c) medium of exchange.
(d) standard of deferred payment.
Q.1.4 The ________ demand for money arises out of the need to hold money as a medium of exchange. This demand for money is a function of ________.
(a) precautionary; interest rates
(b) transactions;
(c) speculative; interest rates
(d) precautionary; national income
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