Macroeconomics + Economy 2009 Update 18th Edition by Campbell McConnell, Sean Masaki Flynn,Stanley Brue

Exercise 12

Explain and evaluate the following statements:
a. The invention of money is one of the great achievements of humankind, for without it the enrichment that comes from broadening trade would have been impossible.
b. Money is whatever society says it is.
c. In most economies of the world, the debts of government and commercial banks are used as money.
d. People often say they would like to have more money, but what they usually mean is that they would like to have more goods and services.
e. When the price of everything goes up, it is not because everything is worth more but because the currency is worth less.
f. Any central bank can create money; the trick is to create enough, but not too much, of it.