Why we give money to its value? Money has value because of its general acceptability. We accept paper dollars because we know that other people will accept dollars later when we try to spend them. Money has value to people because it is widely accepted in exchange for other goods that are valuable. Money and the price level Question: Do changes in the money supply affects … [Read more...] about Velocity of money
Economics
Difference between microeconomics and macroeconomics
Definition of economics: Economics comes from Greek word "Oikonomia". Adam smith explained the definition of economics in his famous "Wealth of Nations" that "Economics is a science which enquires the cause of wealth. Prof. Marshall said, “A study of man's action in the ordinary business of life." Difference between microeconomics and macroeconomics. The difference between … [Read more...] about Difference between microeconomics and macroeconomics
