Author Question: Twenty years ago a stove cost 300 and a refrigerator cost 1,500. Today a stove costs 600, while a ... (Read 56 times)

B · **on:** Jun 29, 2018

Twenty years ago a stove cost 300 and a refrigerator cost 1,500. Today a stove costs 600, while a refrigerator costs 1,800. Which of the following statements is TRUE?

A) The relative price of stoves and refrigerators has not changed.
B) The relative price of a refrigerator has increased.
C) The relative price of a stove has increased.
D) The money price of a refrigerator has fallen.

Question 2

The fact that money can be exchanged for goods reflects money's role as a

A) cause of inflation.
B) medium of exchange.
C) unit of account.
D) store of value.