The Higher and More Unpredictable the Changes in a Monetary

question 51

Multiple Choice

The higher and more unpredictable the changes in a monetary unit, the

• A)more confidence people will have in holding it for the future.
• B)more likely it will be used as a store of value.
• C)less likely it will be used as a store of value.
• D)more likely it will be used as a standard of deferred payment.
• E)less likely contracts will be written to counterbalance the uncertainty of its value in the future.

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Definitions:

Disputant Hostility

The aggressiveness or opposition displayed by parties involved in a conflict or dispute.

Third Parties

Neutral entities or individuals brought into a conflict to help mediate or resolve the dispute.

Negotiation Process

The series of actions or steps taken by parties to communicate and come to an agreement or resolve disputes.

Authority

The right or power assigned to an individual or organization to make decisions, give orders, and enforce obedience.