Answered: A major problem with commodity money is…

A major problem with commodity money is that, to be useful, money must be a. divisible. b. All of these responses are correct. c. storable. d. portable.

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter15: Monetary Policy

Section: Chapter Questions

Problem 3QP

See similar textbooks

Related questions

Q: Suppose that when everyone wakes up tomorrow, they discover that the government has given them an…

A: The quantity theory of money proposes a direct relationship between the quantity of money supplied…

Q: Which credit card has a centurion visible under black light? American Express Visa MasterCard both…

A: Cards companies use features which are hidden and can be seen under UV lights so as to provide…

Q: How does an increase in economic activity affect the money demand curve?

A: Demand for money Relationship between money that people want to hold and the factors affecting it.…

Q: Consider a simple economy that produces only cell phones. The following table contains information…

A: As per the Quantity Theory of Money, Quantity of money * Velocity of money = Price level * Quantity…

Q: According to classical economists

A: The fundamental conviction of classical economics matters is that markets function admirably and…

Q: Need help with economic questions 1. Using a supply and demand diagram for each of the following…

A: please find the answer below.

Q: o decrease because Da) the government refused to allow the money supply to increase. O b) households…

A: Ans. is option (a) the government refused to allow the money supply to increase.

Q: Suppose the households keep some cash aside in banks to use in case of emergencies. Which function…

A: Money is anything that is used as a medium of exchange for goods and services, store of value and…

Q: Money is dynamic in nature how in economics!??

A: Money is the tool that is used to buy goods and services in the market.

Q: how do they get from the first line of the question mark to the second?

A: Pxx +Py (x Px2 / Py2) = IIf we take Pxx common from the above equation (we have to divide each term…

Q: are consumption affect the money demand?

A: The Aggregate demand equation can be written as: Y = C+ I+ G +NX Where Y = Total demand or GDP…

Q: According to the Quantity theory of Money, MV=PT, the two sides of the equation O Is mostly correct…

A: MV = PT where M is the money V is the velocity of money which means how many times the money has…

Q: Classical economists believe that... a. The economy is composed of the real sector and the monetary…

A: Classical economist' primary premise is that markets function effectively and provide the best…

Q: The graph below shows the effect of a decrease in economic activity on the money market using a…

A: The money market equilibrium is determined by the money demand level in the economy and the money…

Q: Examples of money motive on basis which money required by people ?

A: The money has numerous functions like - it acts as - unit of measurement, store of value and means…

Q: Bolt Upright goes to the local music store and sees a CD of his favorite boy band the beasty boys…

A: Money refers to anything that accepted widely for the transaction of goods and services. Money…

Q: Consider a simple economy that produces only apples. The following table contains information on the…

A: In an economy, demand for money is the function of income and constant k, which explains the…

Q: Money is regarded as a factor of production. Do you agree with this statement? Support your answer…

A: Factors of production are the inputs that are included in the production of the goods and services.…

Q: Money is not an economic resource because: a. Money, as such, does not produce anything. b.…

A: According to economic definitions, money is a good that acts as a store of value and a means of…

Q: In the money market, the money supply is graphed by a a.Downward sloping curve b.Perfectly…

A: The money market is regulated by the monetary authority where the equilibrium is achieved at the…

Q: According to the quantity theory of money, the price level is: Selected Answer: a.…

A: According to the quantity theory of money, there is direct relationship between the quantity of…

Q: Suppose that when everyone wakes up tomorrow, they discover that the government has given them an…

A: Money supply (MS) is either held as cash by the people or as deposits by the banks. When the…

Q: What’s the difference between Nominal and Real variables in monetary policy?

A: Monetary policy is drafted and implemented by the central bank of a country or any competent…

Q: iscuss money supply and inappropriate government polices as causes of economicflatuations

A: The money supply is the aggregate sum of money—money, coins, and equilibriums in financial…

Q: Indicate whether each of the following statements is True or False. In each case, give a brief…

A: 1 Technology is always treated as a factor of production in economic theory. 2 An important aspect…

Q: money market

A: LM curve depicts the “Liquidity preference-Money supply”, it is the money market equilibrium. It…

Q: Value of Money MS1 MS2 A B Money Demand Quantity of Money Refer to figure above, when the money…

A: In an economy, an a vertical MS curve explain the inelastic money supply in the short-run at…

Q: When the demand for money is greater than the supply of money: A) people offering to…

A: Money demand is the demand for cash balances by the individuals in the economy.Money supply is the…

Q: One thing we have learned in Econ 302 in the last five weeks is that an increase in the money supply…

A: Money Supply Money supply refers to the supply of money or flow of money in form of Currency known…

Q: An economy has a monetary base of 1,000 $1 bills. Calculate the money supply in scenarios. a. All…

A: The money supply refers to the total volume of money held by the public at a particular point in…

Q: Explain the following lines taken from the selection, Imagination and Reality by J. Winterson: .”…

A: Money culture can't stand craftsmanship. In this world, we want to realize what we're getting, while…

Q: Is economic is a study of money?

A: Economics is a science that deals with human behavior and choices in different economic situations.

Q: Elaborate the saving function with the proper diagram to support your answer _________ a)…

A: Since you have asked multiple questions, we will solve question (a) for you. If you want a specific…

Q: Use the figure below to answer this question. O Interest rate (percent per year) 6 MD3 MD2 MD₁ Real…

A: When analyzing the money demand curve, it can be said that the different purposes of money demand…

Q: According to the principle of monetary neutrality, which variables are affected by changes in the…

A: Nominal variables refer to variables that are measured in monetary units, whereas, real variables…

Q: According to the quantity theory of money, a. V and M are constant. b. V and Y are not affected by…

A: Quantity Theory of money was given by Irwing Fisher.

Q: There is a relationship between the quantity of money in an economy and the level of prices of goods…

A: Money supply is the currency and liquid money available in the economy at a given point of time. The…

Q: How does an increase in price level affect the money market? a. Money demand increases b. Money…

A: The rise in the price level leads to the rise in the demand for the money.

Q: In the figure above, the movement from point A to point B in the money market would be caused by

A: The vertical line shows the money supply curve. It changes when the central conduct contractionary…

Q: 3. If money is so versatile and can buy anything, why don't people demand all the money they can get…

A: Opportunity cost of holding money:- The rate of interest foregone on investment instruments, that…

Q: 3. The clasSical dichotomy and the neutrality of money The classical dichotomy is the separation of…

A: The nominal value is measured by taking prices at the time of measurement an dthe real value is…

Question

A major problem with commodity money is that, to be useful, money must be

	a.	divisible.
	b.	All of these responses are correct.
	c.	storable.
	d.	portable.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Which of the following statements about money that is correct? A. Inflation brings a rising value of money. B. A work of art is an example of money because it can act as a store of value. C. Money is a completely stable store of value. D. Without a medium of exchange, goods and services must be exchanged directly for other goods and services.
. P’Dim and P’Green discusses the use of cowrie shells as money. Although cowrie shells are no longer used as money, do you think other forms of commodity monies are possible? What role might technology play in our definition of money?
Assume money supply increases at rate z. Explain what seigniorage is. Use formulas. What are the factors that can increase the seigniorage?
Only one of the following is part of the money supply. Which is it? Select one: A. Gold. B. Available credit on people's credit cards. C. Currency in a bank's vault. D. Demand deposits..
In the money market, the y axis of the coordinate plane is which variable below? a.Interest rate b.Wage c.Price d.Velocity of money
Which of the following will cause the demand curve for money to shift to the right? (a) An increase in real Gross Domestic Product (GDP).(b) A decrease in the repo rate.(c) An increase in the quantity of money available.(d) A decrease in the quantity of money available.
Based on these motives, what variables did he think determined the demand for money? (Check all that apply.) A. Nominal interest rate. B. Income. C. Price level. D. The risk of losing money.
Which of the following statements is false A. Money is not a comsumption or a capital good B. An increase in the money supply does not confer a general benefit on society C. Economic theory cannot tell us generally which groups benefit and which groups are injured by inflation D. Economic theory cannot tell us the supply of money that is proper for an economy to have
In economics term, define what money is
Which of the following statements is true?a. Money must be relatively ((scarce'' if it is to have value.b. Money must be divisible and portable.c. Ml is the narrowest definition of money.d. All of the answers are correct.
Explain what determines the demand for money.
Which of the following is are the three jobs of money? (Check all that apply) A. Medium of exchange B. Standard of Value C. Divisible D. Store of Value E. Portable