Macroeconomics
13th Edition
ISBN: 9781337617390
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 12, Problem 7QP
To determine
Identify why gold backing is not necessary to give paper money value.
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In ancient Greece, why was gold a more likely candidate for use as money than wine?
>>>In economics, money refers to
wealth
income
currency
assets used and accepted as payment.
Why can fiat money be successfully used as a currency despite the fact that it has no intrinsic value backing it up?
Chapter 12 Solutions
Macroeconomics
Ch. 12.2 - Prob. 1STCh. 12.2 - Prob. 2STCh. 12.2 - Prob. 3STCh. 12.3 - Prob. 1STCh. 12.3 - Prob. 2STCh. 12.3 - Prob. 3STCh. 12.4 - Prob. 1STCh. 12.4 - Prob. 2STCh. 12.4 - Prob. 3STCh. 12 - How much money did you make last year? What is...
Ch. 12 - Prob. 2QPCh. 12 - Prob. 3QPCh. 12 - Prob. 4QPCh. 12 - Prob. 5QPCh. 12 - Prob. 6QPCh. 12 - Prob. 7QPCh. 12 - Prob. 8QPCh. 12 - Prob. 9QPCh. 12 - Prob. 10QPCh. 12 - Prob. 11QPCh. 12 - Prob. 12QPCh. 12 - Prob. 13QPCh. 12 - Prob. 14QPCh. 12 - Prob. 15QPCh. 12 - Prob. 16QPCh. 12 - Prob. 17QPCh. 12 - Prob. 1WNGCh. 12 - Prob. 2WNGCh. 12 - Prob. 3WNGCh. 12 - Prob. 4WNGCh. 12 - Prob. 5WNGCh. 12 - Prob. 6WNGCh. 12 - Prob. 7WNGCh. 12 - Prob. 8WNGCh. 12 - Prob. 9WNGCh. 12 - Prob. 10WNG
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Similar questions
- Money cannot serve as a medium of exchange unless it also serves as a store of value. Is this statement true or false? Explain.arrow_forwardMoney is not a good store of value when the average price is falling. True or Falsearrow_forwardMoney is: the same as income. anything that is commonly accepted as medium of exchange. the value of all coins and currency in circulation at any time. all of the above.arrow_forward
- If you were on an island with 10 other people and there were no money, do you think that money would emerge on the scene? Why or why not?arrow_forwardA main difference between using cigarettes and using dollars as money is that have intrinsic value.arrow_forward“Money not backed by gold or silver is worthless paper and is a fraud committed against the people of the United States.” Critically evaluate this statement.arrow_forward
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