During periods of high inflation, money becomes:
A. more useful as a medium of exchange.
B. less useful as a unit of account.
C. more useful as a unit of account.
D. more useful as a store of value.
Answer: B
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When a nation's currency depreciates, the country might
A) have an inflation rate that exceeds the inflation rate in nations with which it trades. B) have an inflation rate below the inflation rate in nations with which it trades. C) be responding to an increase in the demand for its currency. D) be responding to a decrease in the domestic demand for foreign currencies.
Describe the role of uncertainty at the beginning of and in the unfolding of a financial crisis
What will be an ideal response?
Positive economic profits exist for a firm in the long run if price is above
a. long-run average cost. b. long-run marginal cost. c. long-run total cost. d. long-run variable cost.
Suppose a typical worker in India can produce 32 units of product in an eight-hour day, while a typical worker in Bangladesh can produce 30 units of product in a 10-hour day. We can conclude that
a. worker productivity in Bangladesh is higher than in India. b. the standard of living will likely be higher in India than in Bangladesh. c. productivity is 4 units per hour for the worker in Bangladesh and 3 units per hour for the worker in India. d. there will be no difference between the standard of living in India and Bangladesh.