Answer both the question with proper explanation . I will definitely give you a positive rating. 2.Which of the following must hold for fiat money to be a good store of value?It should be divisible.a.b.Price levels should be stable.C.It should be portable.d.It should be backed by a physical commodity.It should be intrinsically valuable. 8. If the government decides to finance a war by printing extra money, which of the followingwill occur?a.Interest rates will increaseb. Real output will increaseC The government's deficit will narrowd. The rate of inflation will increaseThe government's deficit will increasee.

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2. Which of the following must hold for fiat money to be a good store of value? a. It should be divisible. b. Price levels should be stable. It should be portable. с. d. It should be backed by a physical commodity. (e It should be intrinsically valuable.

2. Which of the following must hold for fiat money to be a good store of value? a. It should be divisible. b. Price levels should be stable. It should be portable. с. d. It should be backed by a physical commodity. (e It should be intrinsically valuable.

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter12: Money, Banking And The Financial System

Section: Chapter Questions

Problem 3QP

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Question

Answer both the question with proper explanation . I will definitely give you a positive rating.

2.
Which of the following must hold for fiat money to be a good store of value?
It should be divisible.
a.
b.
Price levels should be stable.
C.
It should be portable.
d.
It should be backed by a physical commodity.
It should be intrinsically valuable.

8. If the government decides to finance a war by printing extra money, which of the following
will occur?
a.
Interest rates will increase
b. Real output will increase
C The government's deficit will narrow
d. The rate of inflation will increase
The government's deficit will increase
e.

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