There’s A Reason They’re Pennies From Heaven And Not Dollars
A study in the Journal of Consumer Research describes what two economists call “the Denomination Effect,” which is the phenomenon that people are more prone to spend money in small denominations than larger ones. In other words, you’re more apt to spend four quarters than a dollar bill, or five one-dollar bills than a fiver. If the government really wants to kick the economy into gear and get people to spend their stimulus rebates, they should bag the idea of sending out checks and instead ship us each a carton of nickels.
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