Author Question: Which of the following is true if a nation's official money fails to serve as a medium of exchange? ... (Read 78 times)

ENagel · **on:** Jun 30, 2018

Which of the following is true if a nation's official money fails to serve as a medium of exchange?
a. Nothing will replace money to help facilitate exchange.
b. There will be an increase in economic efficiency.
c. Resources will divert from production to exchange.
d. Transactions costs of exchange will decrease.
e. Fewer barter exchanges will be completed.

Question 2

Which of the following is most likely to increase productivity growth, as measured using GDP statistics?
a. Reduced capital formation
b. Decreased human capital
c. Increased research and development
d. Increased government regulation
e. Higher price of a raw material