Why Do Economists Insist on Emphasizing the Difference Between Money

question 7

Essay

Why do economists insist on emphasizing the difference between money and income? Why is this difference important in macroeconomics?

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Definitions:

Time Deposits

Bank deposits that are held for a fixed term or period of time, typically offering higher interest rates than savings accounts.

CDs

Short for Certificates of Deposit, which are savings certificates with a fixed maturity date and specified fixed interest rate.

Money Supply

The total amount of monetary assets available in an economy at any given time, including cash, coins, and balances held in checking and savings accounts.

United States Treasury

The government department responsible for managing federal finances, including issuance of currency and management of government accounts.