Question: Could you help me this question? 1/ Adaptive expectations theory a. explains the relationship between the unemployment rate and inflation. b. holds that people's expectations
Could you help me this question?
1/ Adaptive expectations theory
a. explains the relationship between the unemployment rate and inflation.
b. holds that people's expectations of future inflation are based on their most recent experiences.
c. explains why prices are flexible in the long run.
d. holds that people form expectations on the basis of all available information.e.holds that people form expectations perfectly.
2/ Fiat money, by definition, is money that
a. has no value except as a medium of exchange; there is no inherent or intrinsic value.
b. an intrinsic value equal to its value as a medium of exchange.
c. is inherently valuable; its value as a medium of exchange is in addition to its inherent value.
d. is declared to have a certain value below its intrinsic value.
e. can be exchanged for a commodity at a fixed rate; there is no inherent value.
3/ A "double coincidence of wants" occurs when
a. a third party to an exchange transaction has what both other parties desire.
b. the negotiation between parties arrives at a mutually accepted medium of exchange.
c. each party in an exchange transaction happens to have what the other party desires.
d. each party in an exchange transaction fails to have what the other party desires.
e. both parties in an exchange transaction have a sufficient quantity of the medium of exchange.
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