Author Question: List and define the three functions of money. What will be an ideal ... (Read 62 times)

fahad · **on:** Jun 29, 2018

List and define the three functions of money.

What will be an ideal response?

Question 2

A change in the price level ________ the AE curve and ________ the AD curve.

A) results in a movement along; shifts
B) shifts; results in a movement along
C) shifts; shifts
D) has no effect on; results in a movement along
E) results in a movement along; results in a movement along

xMRAZ · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

The three functions of money are a medium of exchange, a unit of account, and a store of value. A medium of exchange is an object that is generally accepted in exchange for goods and services. A unit of account is an agreed upon measure for stating the prices of goods and services. A store of value is anything that can be held and later exchanged for goods and services. Money serves all three of these functions.

Answer to Question 2

B