The fact that money serves as a medium of exchange as well as a unit of account is a potential cause of trouble because anything that alters the real value of the domestic money in terms of its purchasing power over goods and services
A) will also alter the real terms of those existing contracts that use money as the unit of account.
B) will also alter the real terms of those existing contracts that use money as the medium of exchange.
C) will invalidate existing contracts that use money as the unit of account.
D) will cause people to hoard money.
Correct Answer:
Verified
Q10: The classical dichotomy means that
A) real variables
Q11: One of the reasons for exploring what
Q12: To an economist, money
A) is wealth that
Q13: Each of the following is part of
Q14: In a barter economy
A) one could easily
Q16: The benefit of holding money in one's
Q17: The cost of holding money in one's
Q18: The amount of wealth households and businesses
Q19: The amount of money households and businesses
Q20: The theory that the only important determinant
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