Author Question: Which of the following is an example of money serving as a medium of exchange? a. John buys a cup ... (Read 19 times)

cnetterville · **on:** Jun 30, 2018

Which of the following is an example of money serving as a medium of exchange?
a. John buys a cup of coffee and a roll at the faculty dining room.
b. Steve puts a five-dollar bill in his money belt.
c. Scott deposits cash into a savings account.
d. Roland puts his coins into a piggy bank.

Question 2

An increase in the money supply will lead to an increase in equilibrium real GDP only if:
a. the aggregate demand curve is horizontal.
b. the aggregate supply curve is vertical.
c. the investment function is horizontal.
d. the aggregate supply curve is not vertical.
e. the investment function is upward-sloping.