What would happen if money did not exist?
Exchange would still exist. We could barter goods. But barter requires a double coincidence of wants. The
number of trades taking place would be limited by the lack of a double coincidence of wants, and so we
would see less specialization and production for the market, and more jacks-of-all-trades producing mainly
for single households. With less specialization, the size of our economy would shrink.
You might also like to view...
Short-run contractions and expansions in economic activity are called
A) recessions. B) expansions. C) deficits. D) the business cycle.
An argument against inflation targeting is that
a. the Fed does not completely control inflation. b. it rules out stabilization policy. c. puts too much emphasis on low inflation. d. All of the above
What does annual economic growth refer to?
A) annual increases in GDP B) annual increases in consumption spending C) annual increases in investment spending D) annual increases in Real GDP E) none of the above
When customers buy the exact amount of goods that producers are selling at a specific price, the __________ price exists.
A. market B. equilibrium C. unit D. production