How does money function as a unit of account?
a. Money has intrinsic worth as a commodity
b. Money is convertible into commodities that have intrinsic worth.
c. The prices of all goods and services are measured in terms of money.
d. Things that function as money can do so because people know there is a standard of value that ultimately backs the money even if it is only faith.
e. Bank accounts make it easy for people to store their wealth.
c
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An increase in the inflation rate increases employment only if the increase in inflation is unexpected
Indicate whether the statement is true or false
The shape of the costs curves may be traced back to
A) the law of diminishing marginal utility. B) the difference between the short run and the long run. C) the law of diminishing marginal returns. D) the fact that all production occurs in the long run.