Shen wants to both purchase a new laptop and go Florida for spring break. The computer is priced at $1,299, and the vacation is priced at $750. He has only $1,537 in his checking account, so he cannot afford to purchase both. After much thought, Shen buys the laptop and writes a check for $1,299. Identify what role money plays in each of the following parts of the story. Hint: Select each role only once. Role of Money Shen can easily determine that the price of the laptop is more than the price of the vacation. Shen has $1,537 in his checking account. Shen writes a check for $1,299. Medium of Exchange Unit of Account O Store of Value O O

Shen wants to both purchase a new laptop and go Florida for spring break. The computer is priced at $1,299, and the vacation is priced at $750. He has only $1,537 in his checking account, so he cannot afford to purchase both. After much thought, Shen buys the laptop and writes a check for $1,299. Identify what role money plays in each of the following parts of the story. Hint: Select each role only once. Role of Money Shen can easily determine that the price of the laptop is more than the price of the vacation. Shen has $1,537 in his checking account. Shen writes a check for $1,299. Medium of Exchange Unit of Account O Store of Value O O

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter16: Monetary Policy

Section: Chapter Questions

Problem 1SQP

See similar textbooks

Similar questions

Answer this question in no more than 5 sentences. Why is it necessary for money to possess the necessary attributes that qualify it as “good money”?
Which function of money is in each of the following cases demonstrating? (1) You pay $10 for a movie ticket. (2) You deposit your tax refund check in your saving account. (3) A restaurant manager sets the prices of meals she serves in dollars. (4) A restaurant manager places the day's receipts in the safe. (5) McDonald's announces that a Big-Mac now costs only $1.00. (6) Bill Gates has a net worth of $50 billion.
Suppose you’re at the mall shopping for a pair of shoes and run into NBA player LeBron James. You help him find a perfect gift to give his teammate, Alex Caruso. As thanks for your help, he signed the jersey off his back and gave it to you. Even though his jersey is a valuable asset, why would it not serve as a very good form of money in your attempt to buy shoes? Use the three primary functions of money in your explanation.
Complete the sentences with the correct function of money. Norah walks into her favorite department store, Bullseye, to pick out a new dress. She checks out the price tag and is excited to see that the dress is on sale and is now relatively cheaper than another dress she was considering. Here, money is serving as aShe is especially excited because she has been saving money each week in her piggy bank at home so that she can afford a trip to Florida next summer. Here, money is serving as aShe quickly walks to the checkout line where she pays the cashier for her new dress. Here, money is serving as a Answer bank in images
Give any two characteristics of money in economics?
Which function of money is in each of the following cases demonstrating? (1) You pay $10 for a movie ticket. (2) You deposit your tax refund check in your saving account. (3) A restaurant manager sets the prices of meals she serves in dollars.
What is money? Explain the definition in terms of the functions of money?
. P’Dim and P’Green discusses the use of cowrie shells as money. Although cowrie shells are no longer used as money, do you think other forms of commodity monies are possible? What role might technology play in our definition of money?
What is the difference between commodity money and fiat money? Is there a scenario you can thinkof that incentivizes individuals to hold commodity money instead of fiat money?
Discuss the concept of money from the perspective of a consumer and an investor.
Money is not a good store of value when the average price is falling. True or False
according to the scale and substitution view of money, identify the factors that causes individual or business to hold money partly in cash and partly in the form of liquid asset? explain