Suppose People Are Using Quartz as a Medium of Exchange

question 46

Multiple Choice

Suppose people are using quartz as a medium of exchange.Which term refers to this type of exchange?  

• A) commodity money 
• B) token money 
• C) legal tender 
• D) fiat money

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Definitions:

Consumers Feel Wealthier

A phenomenon where consumers perceive themselves to have more disposable income or wealth, leading to increased spending.

Aggregate Demand Curve

A graphical representation showing the relationship between the total quantity of goods and services that households, businesses, and the government are willing to purchase at each price level.

Price Level

A measure of the average prices of goods and services in an economy at a given time, often used to monitor inflation or deflation.

Short-Run Aggregate-Supply Curve

A curve that shows the relationship between the total output of goods and services and the price level for output in the short run.