An Advantage of Commodity Money Is That Prices Automatically Adjust

question 62

Essay

An advantage of commodity money is that prices automatically adjust with the supply of money. If this is true, why would economists also say the supply of money should be inelastic?

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Definitions:

Moral Intelligence

The capacity to understand principles of right and wrong and to behave according to these principles, leading to ethical decision making.

Mental Capacity

An individual's ability to make decisions or understand information, particularly in legal and medical contexts.

Universal Human Principles

Fundamental norms, values, or truths that are widely accepted across different cultures and societies as inherently right or just.

Universal Principles Stage

A theoretical stage in moral development proposed by Lawrence Kohlberg, where moral reasoning is based on internalized and universal principles of justice.