In the long run, what determines the value of money?
A) the government budget balance.
B) international trade.
C) money market equilibrium.
D) equilibrium in the loanable funds market.
E) real GDP.

Question

Quizplus · Accepted Answer

In the long run, the value of money is determined by money market equilibrium, where the supply and demand for money balance, influencing the price level and purchasing power.

In the Long Run, What Determines the Value of Money