Rapid Inflation Makes Holding a Large Amount of Money

question 52

Multiple Choice

Rapid inflation makes holding a large amount of money:

• A)​wiser, because you will generally need more and more to buy the goods and services you want.
• B)​less wise, because the opportunity cost of holding money is high.
• C)​less wise, because someone might steal it, or it might be destroyed.
• D)​wiser, because the opportunity cost of holding money is high.

---

Definitions:

Unregulated Market

A market where economic activities operate without direct governmental control, often resulting in high competition and consumer choice but potentially also in market failures.

Price Fall

A decrease in the cost of goods or services in the market, often leading to increased consumer demand.

Supply Of Peaches

The total quantity of peaches that producers are willing and able to sell at a given price over a specified time period.

Price Of Peaches

The cost at which peaches are sold, which can vary based on factors like season and quality.