Econ Final Exam Review

6 flashcards · Economics · by sofia lizotte

1. (B). A deficit occurs when revenue < expenditures.

2. (A). Holding all else constant, the budget deficit increases during a recession.

3. (B). G-T-TR.

4. (A). Money is anything that serves as a medium of exchange for goods and services.

5. (B). Currency. Assets from most to least liquid: M1: (cash in circulation, checkable deposits, traveller's checks, demand deposits) M2: (M1 + savings accounts, money market deposit accounts, small time deposits (less than $100,000) and retail money market mutual funds.) M3: (M2 & assets less liquid than M2. )

6. (A). Unit of account. (A unit of account allows comparison of the value of different things - in real life, money is not a great unit of account because it doesn't hold a constant value over time)