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
a factor that shifts the aggregate production function
the velocity of circulation
a medium of exchange
the real interest rate
Answers
GPT-4o mini
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, allowing people to trade goods and services more efficiently than bartering would allow.