Which Function of Money Allows It to Replace Barter in the Economy

question 87

Multiple Choice

Which function of money allows it to replace barter in the economy?

• A)Medium of exchange.
• B)Store of value.
• C)Unit of account.
• D)Medium of exchange,store of value,and unit of account.

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Definitions:

Equilibrium GDP

The level of gross domestic product at which aggregate supply equals aggregate demand, indicating a balance in the economy without any external pressures to change.

Full Employment GDP

The maximum level of output (GDP) an economy can achieve when utilizing all its resources fully and efficiently, without triggering inflation.

Fiscal Policy

Government policies related to taxation and spending to influence the economy.

Money Supply

The entire pool of financial assets in an economy, taking into account cash, coins, and all balances in checking and savings accounts, at a certain timeframe.