A-LevelEconomicsThe macroeconomy9708/12 · May/June 2021 · Q31 Mark

If the rate of inflation rises from 2% to 20%, which function of money is likely to be most affected?

Amedium of exchange

Bstandard for deferred payment

Cstore of value

Dunit of account

✓ Correct answer

C: store of value

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Topic: The macroeconomy, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, May/June 2021 Paper 1 Variant 2, question 3.

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