Supply shocks are a potential source of higher inflation, unless the government counters with ________ policy that ________ the money growth rate

A value-added tax is a tax on consumption and not on personal income

a. True b. False Indicate whether the statement is true or false

The use of money as a unit of account:

a. discourages specialization and division of labor. b. inhibits the exchange of goods and services. c. makes it difficult to compare the relative values of goods and services. d. lowers information costs relative to barter. e. relies on the existence of a double coincidence of wants.