Imagine a Simple World in Which Currency Is the Only

question 4

Multiple Choice

Imagine a simple world in which currency is the only form of money.If there is only a depository bank and the total quantity of currency is $100, then the total supply of money will be:

• A)$0
• B)$10
• C)$100
• D)$1000

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Definitions:

Normative

Relating to norms or standards; often refers to the establishment of what is considered right, wrong, acceptable, or obligatory in society.

Instrumental

Pertaining to an approach or action designed as a means to achieve an end or goal, often with emphasis on efficiency and practicality.

Rational

Characterized by clear, logical thinking or decision-making, often based on facts and reasoning rather than emotion or impulse.

Agents

Individuals or entities that act to produce a particular effect or bring about change, often in the context of social, political, or economic processes.