Function of Money

Nov 23rd, 2014
HelloWorld
Category:
Economics
Price: $5 USD

Question description

There are two parts to this assignment.

  1. Consider these scenarios:

Dash Riprock goes shopping at the local music store he sees a CD of his favorite singer Elvis Costello for only $5. Dash picks up the CD to buy it and then at the last minute he sees another CD of another one of his favorite performers, the Beasty Boys, for $7 and next to it is his favorite all time girl band, the Spice Girls for only $10. This is money acting as?

Crunch Hardtack visits the local zoo. He notices there is a charge to see each animal. It costs $45 to see the monkeys and $78 to see the ant eaters and $94 to see the snails. Being a snail lover, Crunch gives the clerk $94 and goes in and sees the snails. This is money acting as?

Bolt Upright wants to take a vacation. He searches on the internet to find the perfect spot to visit. He finds a 3-week vacation in Siberia for only $1000. Then he finds two weeks of fun in Death Valley, California for only $1500. He also notices that he could spend one wonderful week of fun and relaxation in the Sahara Desert for only $2000. At the last minute Bolt changes his mind and decides to put the vacation off and place his money in a savings account. This is money acting as?

Johnny B Wise has $5000 in his savings account.

What function does money play for Dash, Crunch, and Bolt? Explain why Johnny's money is or is not part of the M1,and/or M2 money supply.

2.  Do some research and find the M1 and M2 levels of money supply in the U.S. economy for the past 20 years. After you have found this information, begin to think like an economist and explain how you feel these levels of both M1 and M2 have affected GDP during the same time period


Tutor Answer

(Top Tutor) Daniel C.
(997)
School: University of Virginia
PREMIUM TUTOR

Studypool has helped 1,244,100 students

8 Reviews


Summary
Quality
Communication
On Time
Value
Five Star Tutor
Dec 8th, 2016
" Outstanding Job!!!! "
kpcutie
Nov 24th, 2016
" Excellent job "
Joemoe
Nov 15th, 2016
" <3 it, thanks for saving me time. "
Hemapathy
Nov 11th, 2016
" all I can say is wow very fast work, great work thanks "
pmallory
Nov 2nd, 2016
" Totally impressed with results!! :-) "
kevin12622
Oct 19th, 2016
" Goes above and beyond expectations ! "
kiln82
Oct 10th, 2016
" awesome work thanks "
likeplum4
Sep 27th, 2016
" Excellent work as usual "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1828 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors