Question 31
Money and InflationTo perform its function as a store of wealth and standard for deferred payment, money must be
- A.portable
- B.in attractive form
- C.stable in value
- D.spent more on capital goods than on consumer goods
Show the answer and explanation
Answer: C (stable in value)
Explanation
Money can hold wealth and settle future debts fairly only if its value does not change much over time.