List and define the three functions of money. What will be an ...

[fahad]

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]

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

[fahad]

TYSM

[bblaney]

Excellent