If the Prices of Goods and Services Were Expressed in Terms

question 12

Multiple Choice

If the prices of goods and services were expressed in terms of carved wooden beads, then the carved wooden beads would be serving as a

• A) medium of exchange.
• B) store of value.
• C) unit of account.
• D) mechanism for transforming present purchases into future purchases.

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Definitions:

Domestic Investment

Domestic investment pertains to the total amount of money spent on capital goods, services, and structures within a country.

Loanable Funds Market

A market where borrowers and lenders interact, with the interest rate determined by the supply of and demand for loanable funds.

Curve Shift

A movement of a demand or supply curve to the left or right, indicating a change in some economic factor other than price.

Exchange Rate

The price of one currency in terms of another, determining how much of one currency can be exchanged for another.