MBF Quiz

1.Exogenous variables are those variables that a model explains. 

• True

• False

2.As a medium of exchange, money is a way to transfer purchasing power from the present to the future. 

• True

• False

3.The nominal exchange rate is the relative price of the currency of two countries.

• True

• False

4.The supply curve shows the relationship between the quantity of pizza supplied and the price of pizza, holding aggregate income constant. 

• True

• False

5.The quantity of ice cream demanded depends not only on the price of ice cream, but also on the price of frozen yogurt. 

• True

• False