Recall that money serves three functions in the Economy. What are these functions? How does...

Question:

Recall that money serves three functions in the Economy. What are these functions?

How does inflation affect the ability of money to serve each of these functions?

Money:

Money is anything acceptable in the exchange of goods and services in the economy and also in settlement of individuals debt. Money should be portable that is easy to carry along; it should be acceptable and durable.

Answer and Explanation:

Functions of money

  1. Money as a unit of account. Money is used in day to day life, and it determines the worth of items in the market. In the economy,...

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What is Money? - Definition and Types

from Economics 102: Macroeconomics

Chapter 11 / Lesson 4
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