Study plan that to which concepts you understand and which her practice, tutoria
ID: 1202410 • Letter: S
Question
Study plan that to which concepts you understand and which her practice, tutorials, animations, videos, and guided solutions. For During the late 1970s, prices quoted in terms of the Israeli currency, the shekel, rose so fast that grocery stores listed their prices in terms of the U.S. dollar and provided customers with dollar-shekel conversion tables that they updated daily. Although people continued to buy goods and services and make loans using shekels, many Israeli citizens converted shekels to dollars to avoid a reduction in their wealth due to inflation. In what way did the U.S. dollar function as money in Israel during this period? (Sec pages 336-338.)Explanation / Answer
when the inflation increases in a currency that currency loses its value as far as it worsen. now people have to carry more cash than before to buy same amount of grocery and if currency is worsening daily then its a huge problem. people have to carry a truck load of money to buy the same grocery as before. people want more stable prices than highly fluctuating prices. so grocery stores converted their prices in terms of dollar which was more stable. same with the wealth. as the shekel was deteriorating daily people wealth tends to fluctuate daily and they can't afford to a such high risk. they will have to convert their money to some more predictable, non-fluctuating currency