Econ Macro (book Only)
6th Edition
ISBN: 9781337408745
Author: William A. McEachern
Publisher: Cengage Learning
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Chapter 13, Problem 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
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