Every Economic Model Should Include Money as a Variable

question 18

Multiple Choice

Every economic model should include money as a variable.This statement is

• A)true,because every transaction in the economy uses money.
• B)true,because the federal reserve is very important.
• C)false,because some transactions in the economy are transacted without money.
• D)false,because a model can get unnecessarily complex if it includes money.

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Definitions:

Broker Commission

A fee paid to a broker for their services, usually a percentage of the transaction value.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.

Lower Of Cost

A method used in accounting to value and report assets and inventory at the lower of its historical cost or current market value.

Market

A place or mechanism where parties engage in exchange of goods, services, or information.