Fiat money is Select one: a.money backed by gold or some other precious metal. b.commodity money like salt. c.valuable only because some authority decrees it to be. d.the name given to Italian lira when it is falling in value.

Fiat money is Select one: a.money backed by gold or some other precious metal. b.commodity money like salt. c.valuable only because some authority decrees it to be. d.the name given to Italian lira when it is falling in value.

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter14: Money And The Economy

Section: Chapter Questions

Problem 6WNG

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Question

Fiat money is

Select one:

a.money backed by gold or some other precious metal.

b.commodity money like salt.

c.valuable only because some authority decrees it to be.

d.the name given to Italian lira when it is falling in value.

One of the impacts of inflation is

Select one:

a.the real value of money falls.

b.wealth is transferred from borrowers to savers.

c.an increase in speculative holdings of cash.

d.higher real interest rates.

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