Macroeconomics (9th Edition)
9th Edition
ISBN: 9780134167398
Author: Andrew B. Abel, Ben Bernanke, Dean Croushore
Publisher: PEARSON
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Question
Chapter 7, Problem 1RQ
To determine
To explain: The definition of Money and economist’s perpective of money.
Expert Solution & Answer
Explanation of Solution
Money refers to anything that is widely used or accepted by the people as a medium of exchange. However, in the modern era, the money could be plastic money, paper money, coins, etc. Moreover, the existence of money made trade easier as compared to the barter system.
The economist uses the term “money” in a more specific term. The set of asset that is used in the economy to buy and sell the goods and services from other people. Moreover, the economist gives stress on its three functions, for instance, a unit of account, store of value, and medium of exchange.
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Chapter 7 Solutions
Macroeconomics (9th Edition)
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