Money cannot serve as a medium of exchange unless it also serves as a store of value. Is this statement true or false? Explain
What will be an ideal response?
This statement is true. If money does not hold its value over time, it will not be accepted in exchange for goods and services. I must be confident that money I accept today for a good or service rendered will be considered valuable tomorrow when I seek to trade it for a good or service. Lacking that confidence I will not accept money today.
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Explain the law of supply. What does the law of supply imply about the shape of the supply curve?
What will be an ideal response?
Graphically which of the following is true for a monopoly?
a. The marginal revenue curve lies below the demand curve and is steeper than the demand curve. b. The marginal revenue curve lies above the demand curve and is steeper than the demand curve. c. The marginal revenue curve lies below the demand curve and is flatter than the demand curve. d. The marginal revenue curve lies above the demand curve and is flatter than the demand curve.
If the government removes a binding price floor from a market, then the price received by sellers will
a. decrease, and the quantity sold in the market will decrease. b. decrease, and the quantity sold in the market will increase. c. increase, and the quantity sold in the market will decrease. d. increase, and the quantity sold in the market will increase.
The shift of labor out of agriculture to industry in the United States has tended to:
A. reduce unemployment in the industrial sector. B. increase labor productivity. C. reduce the rate of productivity growth. D. increase unemployment in the agriculture sector.