Explain the differences between commodity money, representative commodity money, and partially backed representative commodity money
What will be an ideal response?
Commodity money is money that has intrinsic value, so examples are physical items such as gold, agricultural products, and beads.
Representative commodity money is paper currency that can be redeemed for a specific quantity of an underlying commodity such as gold.
Partially backed representative commodity money is paper currency that is backed by only a fraction of the total amount of a commodity in a society.
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An aggregate demand curve
A) shifts to the right when the price level increases and to the left when the price level falls. B) shifts to the right when population decreases and shifts to the left when population increases. C) does not shift, unlike individual or market demand curves. D) shifts to the right when any non-price-level factor increases total planned real spending.
If a country experiences a real GDP growth rate of 4 percent, real GDP will double in
A) 14 years. B) 23.3 years. C) 25 years. D) 35 years. E) 17.5 years.