Lecture5 Key Points

Lecture5 Key Points - Lecture 5 The Theory of Money Key...

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Lecture 5 : The Theory of Money Key Points 1. Money is the most important commodity in a market economy. 2. The role of money is to make trade easier. 3. Every commodity has a different marketability, a different acceptability. 4. Factors which contribute to the different marketabilities of different things: a. the number of persons who might want them for their own satisfaction. b. the question of their portability. c. quantity desired. 5. Economic goods can be divided into three classes or groups: a. producers' or production goods, sometimes called capital goods b. consumers' goods and services c. the media of exchange, more popularly known as moneys 6. Money is neither a producers' good nor a consumers' good. It is merely a medium for facilitating exchanges. 7. Every increase in consumers' goods and producers' goods helps all of us, and on on the other hand, every decrease, every loss, in consumers' goods and producers' goods, every potential producer kept unemployed, hurts all of us. 8. If the total quantity of money is changed, there is neither a
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This note was uploaded on 04/18/2008 for the course ECO 211 taught by Professor Pongracic during the Spring '08 term at Indiana Wesleyan.

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Lecture5 Key Points - Lecture 5 The Theory of Money Key...

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