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Unformatted text preview: turkeys. Money is a medium of exchange because it is universally accepted. Money as a store value is well known. The function of money as a store value is that money can be saved for a later use. If a man is paid $40 to plant a tree, he is able to spend a few dollars now and save the rest for latter. If the man was paid with two frozen turkeys he would have a hard time saving a frozen turkey without it going bad before future use. A frozen turkey that thaws and goes bad could not be used to exchange with, money on the other hand my change value due to deflation or inflation but it will still be accepted. CHECKPOINT: MONEY 3 Reference Mankiw, N. G. (2007). Principles of economics (4th ed.). Mason, OH: South-Western Cengage Learning....
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- Spring '11
- frozen turkey