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Author Question: Money cannot serve as a medium of exchange unless it also serves as a store of value. Is this ... (Read 88 times)

luvbio

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on: Jun 29, 2018
Money cannot serve as a medium of exchange unless it also serves as a store of value. Is this statement true or false? Explain.
 
  What will be an ideal response?

Question 2

Refer to Figure 18-1. Area E + H represents
 
  A) the portion of sales tax revenue borne by consumers.
  B) the portion of sales tax revenue borne by producers.
  C) the excess burden of the sales tax.
  D) sales tax revenue collected by the government.


janeli1

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Reply #1 on: Jun 29, 2018
Answer to Question 1

This statement is true. If money does not hold its value over time, it will not be accepted in exchange for goods and services. I must be confident that money I accept today for a good or service rendered will be considered valuable tomorrow when I seek to trade it for a good or service. Lacking that confidence I will not accept money today.

Answer to Question 2

C


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