The higher and more unpredictable the changes in a monetary unit, the
A)more likely it will be used as a store of value.
B)less likely it will be used as a store of value.
C)more confidence people will have in holding it for the future.
D)less likely contracts will be written to counterbalance the uncertainty of its value in the future.
E)more likely it will be used as a standard of deferred payment.

Question

Quizplus · Accepted Answer

If a monetary unit has higher and more unpredictable changes, it becomes less likely to be used as a store of value as it becomes difficult for individuals to predict the future value of their savings or investments. Therefore, they may choose to invest in more stable currencies or assets.

The Higher and More Unpredictable the Changes in a Monetary