The requirement for a double coincidence of wants occurs when
A) there is inflation.
B) there is deflation.
C) a system of barter is used.
D) the medium of exchange is liquid.

Question

Quizplus · Accepted Answer

The requirement for a double coincidence of wants occurs when a system of barter is used because both parties have to want what the other has in order for a trade to occur. In contrast, in a monetary economy, this requirement is eliminated as people can use money as a medium of exchange to facilitate transactions.

The Requirement for a Double Coincidence of Wants Occurs When