When prisoners use cigarettes or some other good as money, cigarettes become
a. commodity money, but do not function as a unit of account.
b. commodity money and function as a unit of account.
c. fiat money, but do not function as a unit of account.
d. fiat money and function as a unit of account.
b
You might also like to view...
Based on the model of the money market, when real income decreases, the equilibrium interest rate should
A) stay the same. B) increase. C) decrease. D) increase to the same extent that the supply of money increases.
If, in a competitive market, marginal benefit is greater than marginal cost
A) the quantity sold is less than the equilibrium quantity. B) the net benefit to consumers from participating in the market is greater than the net benefit to producers. C) the government must force producers to lower price in order to achieve economic efficiency. D) the quantity sold is greater than the equilibrium quantity.