How Was It Possible for Stamped and Unstamped Commodity Money

question 43

Multiple Choice

How was it possible for stamped and unstamped commodity money to circulate at the same time?

• A)It was not possible; the unstamped money drove the stamped money out of circulation.
• B)It was not possible; the stamped money drove the unstamped money out of circulation.
• C)The unstamped money was accepted at a discount to the stamped money.
• D)The stamped money was accepted at a discount to the unstamped money.

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Definitions:

Price Floors

Price Floors are legally established minimum prices for goods or services, below which they cannot be sold, usually set to protect producers.

Equilibrium

The state in a market where the quantity supplied equals the quantity demanded, and there is no incentive for price to change.

Tariff

A tax on imports.

CD-Rom Drives

Devices used to read information stored on CD-ROMs, often used for the distribution of software and media content.