In countries where the domestic currency unit is not necessarily used to quote prices, it is likely that
A) the currency unit has appreciated in value against most commodities.
B) the monetary authority has run tight money policies in the past.
C) the currency unit has undergone large changes in value relative to commodities or other countries' currency units.
D) fiscal policy has been very contractionary.
E) c and d.

Question

Quizplus · Accepted Answer

The use of foreign currencies for quoting prices often occurs in countries experiencing significant volatility in their domestic currency's value, making it unstable for pricing goods and services.

In Countries Where the Domestic Currency Unit Is Not Necessarily