Problems with the use of commodity money include all of the following EXCEPT
A) there is an opportunity of fraud in the production of commodity money.
B) there are several good substitutes.
C) it carries a high opportunity cost because the commodity could not be diverted from other uses.
D) it is expensive to produce.
E) bits could be clipped off coins and melted down without detection.
Correct Answer:
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Q14: For a buyer in the Lagos-Wright
Q15: A system that uses commodity-based paper currency
Q16: A system that uses commodity-backed paper currency
Q17: In equilibrium in the Lagos-Wright model
A)the inflation
Q18: In the Lagos-Wright model
A)the buyer consumes in
Q20: The cheque-clearing system is
A)includes debit card transactions.
B)only
Q21: In the Lagos-Wright model, in the DM
A)buyers
Q22: The Lagos-Wright model exhibits
A)bargaining in the centralized
Q23: Money neutrality refers to
A)the long run effects
Q24: In the Lagos-Wright model, limited commitment means
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