The Set of Items That Serve as Media of Exchange

question 98

Multiple Choice

The set of items that serve as media of exchange clearly includes

• A)demand deposits.
• B)short-term bonds.
• C)credit cards.
• D)All of the above are correct.

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Definitions:

Full Employment Level

An economic condition in which virtually all individuals willing and able to work at prevailing wage rates are employed.

Aggregate Demand

The sum of all demands for goods and services in an economy, measured at a particular price level over a defined time interval.

John Maynard Keynes

An economist from Britain whose concepts revolutionized the field of macroeconomics and also altered the economic policy-making of states.

Government Spending

refers to the total expenditure by a government on goods, services, and public projects, including salaries, infrastructure, and welfare programs.