Price levels rarely remain the same.This implies that
A)money is an excellent medium of exchange.
B)money is divisible.
C)money is a good medium for measuring value.
D)money is an imperfect medium for storing value.

Question

Quizplus · Accepted Answer

The fact that price levels rarely remain the same suggests that money is an imperfect medium for storing value. This is because the purchasing power of money tends to fluctuate over time, which means that the value of money stored today may be different from its value in the future. A good medium of exchange should be relatively stable in value over time to ensure that individuals can store their wealth without losing value due to inflation.

Price Levels Rarely Remain the Same.This Implies That