The ease with which an asset can be
a. traded for another asset determines whether or not that asset is a unit of account.
b. transported from one place to another determines whether or not that asset could serve as fiat money.
c. converted into a store of value determines the liquidity of that asset.
d. converted into the economy's medium of exchange determines the liquidity of that asset.
d
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In the figure above, the ________ gap is one trillion dollars. To close the gap, the government can ________ government expenditure and/or ________ taxes
A) recessionary; increase; decrease B) inflationary; decrease; increase C) inflationary; increase; increase D) recessionary; decrease; decrease E) recessionary; decrease; increase
Lisa has an income of $250 per week, which she spends entirely on milk and eggs. The price of milk is $2 per gallon and the price of a dozen eggs is $1
What is the opportunity cost of a gallon of milk? If the price of a dozen eggs rises to $1.50, what happens to the opportunity cost of a gallon of milk?