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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