The Value of Money as a Means of Payment

question 84

Multiple Choice

The value of money as a means of payment:

• A) is independent of changes in the amount of money in the economy.
• B) is fixed once relative prices are set.
• C) depends on the amount of money in the economy, among other things.
• D) depends on whether the majority of M1 is in currency or demand deposits.

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Definitions:

Daphne Major

An island in the Galápagos Archipelago known for long-term studies of finch populations, which have provided profound insights into the process of natural selection.

Natural Selection

An evolutionary process in which species that are more suited to their environment are more likely to survive and have a greater number of descendants.

Pristine Environment

An ecosystem or area that is untouched or minimally impacted by human activities, often considered in a natural or original state.

Genetic Distance

A measure of the genetic divergence between species or between populations within a species; a reflection of the amount of genetic change (evolution) that has occurred.