The higher and more unpredictable the changes in a monetary unit, the
A)more confidence people will have in holding it for the future.
B)more likely it will be used as a store of value.
C)less likely it will be used as a store of value.
D)more likely it will be used as a standard of deferred payment.
E)less likely contracts will be written to counterbalance the uncertainty of its value in the future.

Question

Quizplus · Accepted Answer

If a monetary unit experiences higher and more unpredictable changes, it becomes less likely that people will use it as a store of value. This is because the value of the currency could rapidly decrease, making it a risky investment. Contracts may also be less likely to be written using this currency due to the uncertainty of its future value.

The Higher and More Unpredictable the Changes in a Monetary