Money makes a variety of economic transactions possible. In the following three situations, determine whether money is involved in the transaction. In prison camps during World War II, and in some prisons today, cigarettes circulate among prisoners. For example, today a cell phone might cost 600 cigarettes, whereas a magazine might cost two cigarettes. Discuss whether cigarettes are fulfilling all three functions of money in this case. Over the past 50 years, credit cards have become an increasingly popular way for people to purchase goods and services. Are credit cards themselves money? Explain your reasoning. Many people have retirement savings accounts, in which they hold stocks and bonds. Do these balances constitute money? Why or why not?
HW 9 Q 2)Hey, I need help with the following multi-part macro question. Thank you in advance!
Money makes a variety of economic transactions possible. In the following three situations, determine whether money is involved in the transaction.
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In prison camps during World War II, and in some prisons today, cigarettes circulate among prisoners. For example, today a cell phone might cost 600 cigarettes, whereas a magazine might cost two cigarettes. Discuss whether cigarettes are fulfilling all three functions of money in this case.
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Over the past 50 years, credit cards have become an increasingly popular way for people to purchase goods and services. Are credit cards themselves money? Explain your reasoning.
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Many people have retirement savings accounts, in which they hold stocks and bonds. Do these balances constitute money? Why or why not?
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