(Solved by Humans)-Money serves three functions in the economy: medium of exchange,
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Money serves three functions in the economy: medium of exchange, unit of account, and store of value.
For each of the following statements about inflation, indicate which function of money inflation is hindering.
| Inflation erodes money?s purchasing power. | |||
| Inflation causes menu costs. | |||
| In some countries with hyperinflation, prices are posted in terms of U.S. dollars rather than the local currency, even though the local currency is still used to purchase the good. |
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This question was answered on: 10 May, 2025
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