Question

When money is accepted as payment in a market transaction, it is functioning as


a factor that shifts the aggregate production function


the velocity of circulation


a medium of exchange


the real interest rate

Question 49
Question 49

Answer 1

When money is accepted as payment in a market transaction, it is functioning as **a medium of exchange**.

This is one of the primary functions of money, alongside serving as a unit of account and a store of value.