A reduction in the long run marginal cost of producing gold coins will eventually
cause the purchasing power of money to _____ and the quantity of gold coins in
circulation to _____.
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decrease; increase
Although the demand for bitcoin varied considerably over time, Hazlett and Luther
found that the demand for bitcoin was:
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Comparable to that of gov't-issued monies.
,Deflation
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A decrease in the general level of prices (a negative inflation rate).
Comparative Statics
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Used by economists to identify causal mechanisms & make predictions.
Endogenous Money
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- In a commodity money regime, the money supply is endogenous.
- Meaning it automatically adjusts over time to ensure that the purchasing
power = the long run marginal cost of production.
The term monetary _____ refers to the institutions and mechanisms that govern the
supply of money and, hence, its purchasing power.
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, regime
When a gov't confers ____________, courts are required to recognize the item as
satisfactory payment of any monetary debt, & might settle disputes by requiring
payment in the item. Unlike a ___________, it doesn't require the item to be accepted in
spot market transactions.
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legal tender status; forced money law
Medium of exchange
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- Any item that is widely acceptable in exchange for goods and services.
- Necessary, but not sufficient/enough.
Commodity Money
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, - A good that is used as money, meaning it has both monetary & non-
monetary uses.
- Historical examples include gold, salt, or silver which all used to be
considered a commonly accepted medium of exchange.
(A.) Inflation (Performance of Market-based vs. Central Bank Managed Fiat Money)
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- Market-managed inflation was lower,
- While Central Bank dramatically increased.
What are the 2 Views On Why we Use Money?
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(1.) Historical Materialist View
(2.) Economic View
Dynamic Quantity Theory of Money
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cause the purchasing power of money to _____ and the quantity of gold coins in
circulation to _____.
Give this one a try later!
decrease; increase
Although the demand for bitcoin varied considerably over time, Hazlett and Luther
found that the demand for bitcoin was:
Give this one a try later!
Comparable to that of gov't-issued monies.
,Deflation
Give this one a try later!
A decrease in the general level of prices (a negative inflation rate).
Comparative Statics
Give this one a try later!
Used by economists to identify causal mechanisms & make predictions.
Endogenous Money
Give this one a try later!
- In a commodity money regime, the money supply is endogenous.
- Meaning it automatically adjusts over time to ensure that the purchasing
power = the long run marginal cost of production.
The term monetary _____ refers to the institutions and mechanisms that govern the
supply of money and, hence, its purchasing power.
Give this one a try later!
, regime
When a gov't confers ____________, courts are required to recognize the item as
satisfactory payment of any monetary debt, & might settle disputes by requiring
payment in the item. Unlike a ___________, it doesn't require the item to be accepted in
spot market transactions.
Give this one a try later!
legal tender status; forced money law
Medium of exchange
Give this one a try later!
- Any item that is widely acceptable in exchange for goods and services.
- Necessary, but not sufficient/enough.
Commodity Money
Give this one a try later!
, - A good that is used as money, meaning it has both monetary & non-
monetary uses.
- Historical examples include gold, salt, or silver which all used to be
considered a commonly accepted medium of exchange.
(A.) Inflation (Performance of Market-based vs. Central Bank Managed Fiat Money)
Give this one a try later!
- Market-managed inflation was lower,
- While Central Bank dramatically increased.
What are the 2 Views On Why we Use Money?
Give this one a try later!
(1.) Historical Materialist View
(2.) Economic View
Dynamic Quantity Theory of Money
Give this one a try later!
