Which quotation supports the analysis that money only holds value if a government can insure it with actual goods? "People bartered. Bartering is trading goods or services without the exchange of money. So, a family that had a goat but needed seeds to plant crops might barter with another family that had seeds and wanted goat milk." (paragraph 3) "They used cacao in important rituals and associated it with the gods. But the Aztecs O found it difficult to grow cacao trees. To make sure they always had a supply of cacao, the Aztecs demanded that conquered groups pay tribute in cacao beans." (paragraph 6) "The Congress promised that they could be redeemed at a later date. But the Congress printed too many bills. They were easily counterfeited. And they were not backed by any asset that gave people confidence that they would hold their value. The Continentals soon became worthless." (paragraph 11) "Or, as in the case of the European Union, nations have joined together to develop a O shared currency for greater economic stability. Most nations use a combination of coins and paper money." (paragraph 15)

Which quotation supports the analysis that money only holds value if a government can insure it with actual goods? "People bartered. Bartering is trading goods or services without the exchange of money. So, a family that had a goat but needed seeds to plant crops might barter with another family that had seeds and wanted goat milk." (paragraph 3) "They used cacao in important rituals and associated it with the gods. But the Aztecs O found it difficult to grow cacao trees. To make sure they always had a supply of cacao, the Aztecs demanded that conquered groups pay tribute in cacao beans." (paragraph 6) "The Congress promised that they could be redeemed at a later date. But the Congress printed too many bills. They were easily counterfeited. And they were not backed by any asset that gave people confidence that they would hold their value. The Continentals soon became worthless." (paragraph 11) "Or, as in the case of the European Union, nations have joined together to develop a O shared currency for greater economic stability. Most nations use a combination of coins and paper money." (paragraph 15)

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Classical Macroeconomics And The Self Regulating Economy

Section9.1: The Classical View

Problem 1ST

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