Business, 23.11.2019 07:31 Pranav2004

Which of the following applies to the "value of money"?
i) it is the inverse of the price level.
ii) the value of money falls during economic expansions.
iii) it is the quantity of goods and services that a unit of money will buy.

Answers: 1

Show answers

Answers

The answer is iii. That is, value of money lies on the quantity of goods and services that a unit of money are able to exchange for

Explanation:

Money is valuable seemly because of its purchasing power. In other words, its value depends on how much goods and services a unit of currency may purchase. Subsequently, their purchasing power fluctuates following the variation in price level.

Once price level is going up, money has less value - that is a unit of money can purchase less products and services, or that currency is depreciated. Once price level is going down, money has more value - that is a unit of money can purchase more products and services, or that currency is appreciated.

Answer from: happysage12

The answer is i and iii

Explanation:

The value of money is whatever money can be exchanged for. This refers to the purchasing power of money, if there is a rise in prices, it means the value of money has fallen and a fall in prices means that the value of money has risen. Therefore, we can say that the value of money depends primarily on the general price level for goods and services. One of the qualities of money is that it has no intrinsic value, this means that money should have little or no value different from its value of exchange of goods and services. Therefore, money should be wanted not because of its value but because of its value as a medium of exchange.

The value of money is inversely proportional to the general price level for goods and services. The value of money is therefore measured by using the price index such as consumer price index, wholesale price index, cost of living index, and the GDP index.

Answer from: Quest

i would go with get a bachelor’s degree

hope i

-lavira : )

Answer from: Quest

Domain is example and subdomain is www.

Other questions on the subject: Business

Business, 21.06.2019 22:30, izzybellee20004

Before contacting the news or print media about your business, what must you come up with first ? a. a media expertb. a big budgetc. a track recordd. a story angle

Answers: 1

continue

Business, 22.06.2019 09:40, izzynikkie

Microsoft's stock price peaked at 6118% of its ipo price more than 13 years after the ipo suppose that $10,000 invested in microsoft at its ipo price had been worth $600,000 (6000% of the ipo price) after exactly 13 years. what interest rate, compounded annually, does this represent? (round your answer to two decimal places.)

Answers: 1

continue

Business, 22.06.2019 17:30, samanthaepperson

The purchasing agent for a company that assembles and sells air-conditioning equipment in a latin american country noted that the cost of compressors has increased significantly each time they have been reordered. the company uses an eoq model to determine order size. what are the implications of this price escalation with respect to order size? what factors other than price must be taken into consideration?

Answers: 1

continue

Business, 22.06.2019 17:40, libi052207

Turrubiates corporation makes a product that uses a material with the following standards standard quantity 8.0 liters per unit standard price $2.50 per liter standard cost $20.00 per unit the company budgeted for production of 3,800 units in april, but actual production was 3,900 units. the company used 32,000 liters of direct material to produce this output. the company purchased 20,100 liters of the direct material at $2.6 per liter. the direct materials purchases variance is computed when the materials are purchased. the materials quantity variance for april is:

Answers: 1

continue

You know the right answer?

Which of the following applies to the "value of money"?
i) it is the inverse of the price le...