Question 1 (1 point) The nation of Covid exports silk, residents of Covid who produce silk become worse off, residents of Covid who buy silk become better off an the economic well-being of Covid rises residents of Covid who produce silk become worse off, residents of Covid who buy silk become better off and the economic well-being of Covid falls. residents of Covid who produce silk become better off, residents of Covid who buy silk become worse off; und the economic well-being of Worldova rises. residents of Covid who produce silk become better off, residents of Covid who buy silk become one off, and the economic well-being of Covid falls. Question 2 (1 point) You spend 512 to acquire a Bill Barr bobblehead. Which function of money does this best illustrate? Medium of exchange Unit of account Store of value Liquidity 1 -4 Question 3 (1 point) Maria and Michael are both U.S. citizens. Marin opens a cafe in Spain. Michael builds a U.S. based factory using equipment from Japan. Whose action is an example of U.S.foreign direct investment? 27 Maria's and Michael's Maria's but not Michael's 30 Michael's but not Maria's Neither Michael's mor Maria's 33 int Question 5 (1 point) Although inflation may be a significant problem, the "inflation fallacy" is a fallacy because increases in the price level can be created by increases in money demand. nominal incomes tend to rise at the same time that the price level is rising, leaving real income unche as the price level rises, the value of a dollar falls. inflation only changes real variables. Question 6 (1 point) In the United States, the burden of the inflation tax falls mostly heavily on those who hold a lot of currency and accounts for a large share of U.S. government revenue. a lot of currency but accounts for a small share of U.S. government revenue. little currency and accounts for a large share of U.S. government revenue. little currency but accounts for a small share of U.S. government revenue. Question 7 (1 point) If, in the country of Giardia, saving exceeds investment, then there is a trade deficit and Y>C+I+G. then there is a trade deficit and Y C+I+G. then there is a trade surplus and Y