Briefly explain the three functions of money


Money serves as a medium of exchange, which means it is generally accepted in exchange for goods and services. The existence of a medium of exchange reduces transaction costs. Money serves as a measure of value, allowing people to compare value and cost in a common unit, thus facilitating trade. Money is also used to store value, which means money is an asset. Although most forms of money do not pay interest like other assets, money is highly liquid, meaning it can easily be transformed into other goods.

Economics

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Using the above table, moving from alternative C to alternative B, what is the opportunity cost of one loaf of bread?

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Economics

Last year in the country of Union, the price level increased and real GDP increased. Such an outcome might have occurred because short-run aggregate supply ________ and aggregate demand ________

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Economics

You have received your advanced degree in biochemistry with a specialty in recombinant DNA technology. Your colleagues wish to form a partnership to research adenovirus vectors

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Economics

Suppose you were given a gift of a gold mine that generates $1,000 of net income every year, indefinitely. And suppose the equilibrium rate of interest is 5 percent. What is the present value of that gold mine?

a. $20,000 b. $5,000 c. $50,000 d. $500,000 e. $10,000

Economics