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Define money. How does its act as a ‘measure of value’? |
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Answer» Definition of Money: “Anything which is widely accepted in payments for goods or in discharge of other kinds of business obligations.” —Robertson Money is accepted as a common measure of value or unit of account. The goods in terms of which the prices of all other goods are expressed is called the measure of value or the Numeraire. In modern economies, it is money which acts as a Numeraire, i.e. prices of all goods are expressed in terms of money. |
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