What are the three functions of money?
Economists have identified three specific functions of money. The first function of money is that it performs as a medium of exchange. Money must be very widely accepted as a method of payment in the markets for goods, labor, and financial capital. The second function of money is that it serves as a unit of account. Money is the ruler by which other values are measured. The third function of money is that it can be used as a store of value over time.
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The savings rate ________ over the long run but ________ over the short run
A) is constant as Keynes assumed; varies as Friedman assumed B) is constant as Friedman assumed; varies as Keynes assumed C) is constant as Friedman assumed; varies as Friedman assumed D) varies as Keynes assumed; varies as Keynes assumed
See Scenario 4.1. What quantity Qc will maximize Daniel's utility given the information above?
A) 0 B) 24 C) 40 D) 60 E) none of the above