What distinguishes commodity money from fiat money?
What will be an ideal response?
Commodity money, such as gold or silver, has value even if it is not used as money. For example, gold coins could be melted down and converted to jewelry. Fiat money, such as U.S. paper currency really has no value other than its use as money. Its value derives from the fact that it is deemed to be legal tender by the U.S. government and along with people's willingness to accept it.
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Peanut butter and jelly are complements. If the price of peanut butter increases, the demand for jelly will increase
Indicate whether the statement is true or false
A firm experiencing constant returns to scale operates on the horizontal part of the:
a. long-run average total cost curve. b. marginal cost curve. c. marginal product curve. d. total product curve.
The portion of planned aggregate expenditure that is independent of output is called ________ expenditure.
A. actual B. planned C. potential D. autonomous
According to the rational inattention theory, during the periods between informational updates
A. firms always change product prices more than the inflation rate. B. firms fail to fully adjust product prices. C. firms change the wages of their employees but keep product prices unchanged. D. firms fully adjust product prices.