Money was developed to economize on transaction costs

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For the following, mark ‘T’ if the statement corresponds most closely with the traditional (mainstream/neoclassical/textbook) story of money, and 'M' if it corresponds to the story told by MMT (I've ended up getting a 3/7 on this and I'm not sure which one I got right or wrong.)

Money is inherently tied up with the state’s power to command society’s resources:


Money was developed to economize on (reduce) transaction costs:


Money is a credit-debt relationship whose value as money stems from its generally acceptability:


Government deficits must either crowd out private investment or devalue the currency:


Money in the US today can be likened to scorekeeping, in that the park never risks running out of points to put up on the scoreboard


Following Abba Lerner, the focus of government spending and taxing policy should be the real    impact on the economy, not the size of the deficits or debt


The role of banks and government in money was initially to store and vouch for the purity of the commodity money


Reference no: EM131366761

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