Money contributes to economic activity and allows for a more complex society tha

Question

Money contributes to economic activity and allows for a more complex society than barter does because: NOT (A)

a)money is managed by a central bank and can be increased or decreased to influence economic activity. b)there are many international currencies and this requires a complex system of exchange rates. c)barter is inefficient. Each time you want to make a trade you have to find a partner who has something you want and wants what you have to offer. d)barter requires a central manager to determine who has what you want and who wants what you have.

Explanation / Answer

c)barter is inefficient. Each time you want to make a trade you have to find a partner who has something you want and wants what you have to offer.

Each time it is not possible to find a person who wants what you have to offer and has the product you want to buy. Moreover, there may be differences in value of the product which will not given full satisfaction to the person giving a higher value product in barter.

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