To the extent that the value of money is less predictable, it becomes
A) more acceptable as a standard of deferred payment.
B) more acceptable as a unit of account.
C) more acceptable as a store of value.
D) less acceptable as a medium of exchange.

Question

Quizplus · Accepted Answer

Money's primary function is to serve as a medium of exchange, and unpredictability regarding its value makes it less reliable for this purpose. If people cannot rely on money to hold its value, they may not want to accept it as a means of exchanging goods and services. Therefore, less predictability in the value of money makes it less acceptable as a medium of exchange.

To the Extent That the Value of Money Is Less