ECON MACRO
ECON MACRO
5th Edition
ISBN: 9781337000529
Author: William A. McEachern
Publisher: Cengage Learning
Question
Chapter 13, Problem 1.5P
To determine

The meaning of the statement −“the better fiat money assists as a store of value, the more acceptable it is”. Also, the reason behind people losingconfidence in money.

Concept Introduction:Fiat money is currency that a government has declared to be legal tender, but it is not backed by a physical commodity. Fiat money only has value because the government maintains that value, or because two parties agree on said value. A store of value is that function of money which can be saved, retrieved and exchanged at a later time, and be predictably useful when retrieved

Blurred answer
Knowledge Booster
Recommended textbooks for you
  • ECON MACRO
    Economics
    ISBN:9781337000529
    Author:William A. McEachern
    Publisher:Cengage Learning
    Economics:
    Economics
    ISBN:9781285859460
    Author:BOYES, William
    Publisher:Cengage Learning
    Macroeconomics
    Economics
    ISBN:9781337617390
    Author:Roger A. Arnold
    Publisher:Cengage Learning
  • Economics (MindTap Course List)
    Economics
    ISBN:9781337617383
    Author:Roger A. Arnold
    Publisher:Cengage Learning
    Principles of Economics 2e
    Economics
    ISBN:9781947172364
    Author:Steven A. Greenlaw; David Shapiro
    Publisher:OpenStax
    Microeconomics
    Economics
    ISBN:9781337617406
    Author:Roger A. Arnold
    Publisher:Cengage Learning
  • ECON MACRO
    Economics
    ISBN:9781337000529
    Author:William A. McEachern
    Publisher:Cengage Learning
    Economics:
    Economics
    ISBN:9781285859460
    Author:BOYES, William
    Publisher:Cengage Learning
    Macroeconomics
    Economics
    ISBN:9781337617390
    Author:Roger A. Arnold
    Publisher:Cengage Learning
    Economics (MindTap Course List)
    Economics
    ISBN:9781337617383
    Author:Roger A. Arnold
    Publisher:Cengage Learning
    Principles of Economics 2e
    Economics
    ISBN:9781947172364
    Author:Steven A. Greenlaw; David Shapiro
    Publisher:OpenStax
    Microeconomics
    Economics
    ISBN:9781337617406
    Author:Roger A. Arnold
    Publisher:Cengage Learning