To ensure the acceptability of money,a government must

Question

Quizplus · Accepted Answer

To ensure the acceptability of money, a government must limit its quantity relative to output. If the government prints too much money, it leads to inflation, causing the value of money to decrease. By limiting its quantity, the government can maintain the stability of the economy, making money acceptable for transactions. Backing money with gold or silver is no longer a prevalent concept, and creating an excess of money can lead to inflation, making it unacceptable. Preventing the public from holding it for extended periods and ensuring its supply keeps pace with inflation are not essential factors in ensuring the acceptability of money.

To Ensure the Acceptability of Money,a Government Must