Asked by Tristen Peterson on Jun 12, 2024
Verified
The existence of money makes trade easier. How is it that money can also increase the standard of living?
Standard of Living
The degree of prosperity, convenience, material possessions, and essential needs accessible to a specific social or economic group or particular location.
- Understand the importance of liquidity in the economy and its susceptibility to changes in financial instruments and policies.
- Gain an insight into the influence of money supply adjustments on the economic environment.
Verified Answer
AV
Andrea VillaJun 14, 2024
Final Answer :
The existence of money means the economy does not have to rely on barter for trade. This allows people to specialize in production, increasing productivity, leading to an increase in the amount of goods and services people can purchase.
Learning Objectives
- Understand the importance of liquidity in the economy and its susceptibility to changes in financial instruments and policies.
- Gain an insight into the influence of money supply adjustments on the economic environment.