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Which of the Following Is One Problem with Fiat Money

Question 72

Multiple Choice

Which of the following is one problem with fiat money, as compared to commodity money?  


A)  More resources are used to create fiat money than to create commodity money. 
B)  Frequently too little fiat money is available relative to commodity money. 
C)  The potential for inflation is greater with fiat money than with commodity money. 
D)  Fiat money is less divisible than commodity money.

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