Pretend that a country is on the gold standard and an evil villain succeeds in destroying a significantly large amount of gold. On a graph that relates the purchasing power of money to the quantity of money, show the initial equilibrium and the changes that result from the dastardly deed.

Q: Advocate the benefits of using monetary policy to control the economy.

A: A change in the money supply is known as monetary policy. By keeping an eye on price changes and…

Q: Which of the following is NOT a function of money as presented in economics? medium of exchange…

A: Money is the medium of exchange and acts as a legal tender.  Medium of exchange means any goods and…

Q: A barter economy is an economy where goods and services are exchanged for money. money is exchanged…

A: Barter system is the system where goods and services are exchanged for the other goods and services.…

Q: Assume that the quantity theory of money and relative PPP both hold. Output growth is 3% in the U.S.…

A: Purchasing power parity is a method of comparing the absolute purchasing power of currencies by…

Q: why should monetary policy be used ?

A: All central banks have three tools of monetary policy in common. First, all of them use open market…

Q: According to Lawrence White in "How Common Has Private Currency Been?" The private sector can…

A: It can be described as the tangible, physical forms of money that are used in the exchange of…

Q: As early as the year 1000 CE, nigeria used silver and other metal coins as currency.  This is an…

A: Commodity money is the money that as certain intrinsic value. The intrinsic value is derived from…

Q: are you in favour or against the abolition of cash?why

A: Abolishing of cash refers to ending the use of print cash and depending on the cashless system. This…

Q: In the United States, the money supply. Multiple Choice World Bank is responsible for regulating the…

A: Fedral Reserve Bank is central monetary authority of United States which regulates and monitors…

Q: Explains it correctly Money such as Money Demand, Money Creation and banking, Monetary and Fiscal…

A: Money: Money is considered an object that is generally accepted as a medium of exchange. It was…

Q: demonetization

A: Demonetization refers back to the technique of discontinuing the use of a specific forex unit,…

Q: Which statement is not true?   Commodity money cannot be fiat money and vice-versa.   Commodity…

A: Money is something which is widely accepted by general public. It performs the various function such…

Q: What happens to the purchasing power of money when the price level increases?

A: Purchasing Power: Purchasing power indicates the financial ability to buy commodities.…

Q: Explain the expected market conditions for money markets and capital markets

A: The money market is where short-term debt is traded. It is a continuous flow of currency between…

Q: Countries normally attempt to manage their economy using monetary policy. By managing the money…

A: Concepts: The international flow of money refers to the inflow and outflow of money in an economy…

Q: ith a barter system, 1 dog is worth 20 carrots, 40 carrots are worth 8 beans and 1 cat is worth 100…

A: Barter System is the system in which two-person or more parties are exchanging goods and services to…

Q: To ensure that paper money will be accepted, the U.S. government implicitly promises the public that…

A: To ensure that paper money will be accepted, the U.S. government implicitly promises the public that…

Q: Which monetary standard does this image explain? Describe when this system was initiated. Who are…

A: A monetary system is a set of rules, institutions, and mechanisms governing the creation,…

Q: o Individuals wish to hold money only as a precaution O Individuals do not hold money for either…

A: Classical economics is that thought of school where economists thought that markets perform best…

Q: State three ways in which a government can influence the value of its currency. For each, state…

A:

Q: The reserve ratio is the fraction of deposits that banks   a.Hold in order to maintain the…

A: The ‘reserve’ requirement ratio is the bare minimum amount of ‘deposits that the commercial banks…

Q: Distinguish amongst the main categories of elasticity. Include in your answer the provision of…

A: Studying changes in quantity sought or provided as a result of determinant changes uses the idea of…

Q: what is money Question 10 options:   a medium of exchange   all are correct   a store of value…

A: Money is an economic concept that is used to  define a unit for making an exchange of goods and…

Q: Define soft currency

A: In international trade, foreign exchange is the main source through which transactions take place…

Q: Which of the below statements DOES NOT CORRECTLY capture the meaning of the word "money" as…

A: Money is anything that serves as a medium of exchange, a unit of account, and a store of value

Q: Which of the following is an example of fiat money? Group of answer choices A U.S. one-hundred…

A: Money is anything that is accepted as payment by people while buying and selling of product.  There…

Q: and partial

A: A currency is money in any form while either in use or circulation being used as a medium of…

Q: Which of the following is an example of representative money?   Group of answer choices   Gold…

A: Representative money is money created by the government and backed by a physical asset such as…

Q: economics, money refers to wealth income currency assets used and accepted as payment.

A: Money consider as a medium of trade, as a store of significant value, and as a unit of record. Mode…

Q: Under the initial Bretton Woods system, O foreign currencies could be converted into U.S. dollars,…

A: Under the Bretton Woods system, participating countries agreed to fix the exchange rates of their…

Q: Explain what determines the demand for money.

A: The key determinants of the demand (DD) for money are income and the interest rate. The Demand (DD)…

Q: Mike makes excellent cheesecake and Sue is very good at changing the oil in a car. Sue agrees to…

A: Barter system is where there is exchange of goods and services for other goods and services.  There…

Q: Is barter becoming more or less prevalent in the US economy? Why?

A: Money didn't exist once upon a time. People would simply request the items they wished, and in…

Q: The buying power of a dollar increases when more money is available?? True or false

A: Buying power is also known as Purchasing power Purchasing power refers to the number of goods and…

Q: Currency is different from money in that currency______  A)is a note representing the worth of…

A: A currency is a:- means of payment can not be duplicated (it is illegal) currency differs…

Q: The supply curve in the graph represents the money supply, whereas the demand curve represents money…

A: The government decided to print more money to improve production levels. Improvement of money supply…

Q: Explain the following lines taken from the selection, Imagination and Reality by J. Winterson:  .”…

A: Money culture can't stand craftsmanship. In this world, we want to realize what we're getting, while…