Google
Thursday 
June 21, 2018 

AmosWEB means Economics with a Touch of Whimsy!

AmosWEBWEB*pediaGLOSS*aramaECON*worldCLASS*portalQUIZ*tasticPED GuideXtra CrediteTutorA*PLS
SAVING FUNCTION: The positive relation between household saving and household disposable income. The saving function is commonly presented as the saving line or propensity-to-saving line. The slope of this line is the marginal propensity to save, which is the proportion of any additional income used for saving. The saving function and the marginal propensity to saving play key roles in the multiplier and accelerator concepts. Because consumption is the difference between disposable income and saving, the consumption function is a complementary relation to the saving function.

Visit the GLOSS*arama

Most Viewed (Number) Visit the WEB*pedia

Lesson 17: Money | Unit 2: More About Money Page: 10 of 25

Topic: Summary <=PAGE BACK | PAGE NEXT=>

  • The four functions of money:
    1. Medium of exchange: money makes it easier to buy, sell, produce, and consume goods and services.
    2. Measure of value: prices are stated in terms of the monetary unit.
    3. Store of value: value can be stored over time with money.
    4. Standard of deferred payment: future payments are also in terms of the monetary unit.
  • Using money as a medium of exchange eases the exchange process, makes it more efficient, and frees resources for production.
  • Using money as the unit for prices gives a measure for value, that is, how much value we place on a good.
  • Price inflation is the nemesis for the store of value function of money.
  • Money is used as a standard for buying now and paying later.
  • The four characteristics of money:
    1. Durable: It helps to retain value from one exchange to do the next and store value for future exchanges.
    2. Divisible: It lets us accurately match an amount of money to the precise value of a good.
    3. Transportable: It allows us to conduct exchanges far and wide, to go where we need to go for an exchange.
    4. Non-counterfeitable: It keeps the value of money from being diluted.

Course Home | Lesson Menu | Page Back | Page Next

PRIVATE SECTOR

The combination of households and businesses into a single group. It is termed the private sector to indicate that decisions are made by private individuals (either consumers or producers) in pursuit of their personal self-interests. The contrasting phrase is public sector, in which decisions are made by governments on behalf of the public.

Complete Entry | Visit the WEB*pedia


APLS

BROWN PRAGMATOX
[What's This?]

Today, you are likely to spend a great deal of time at a garage sale hoping to buy either car battery jumper cables or a dozen high trajectory optic orange golf balls. Be on the lookout for the happiest person in the room.
Your Complete Scope

This isn't me! What am I?

Only 1% of the U.S. population paid income taxes when the income tax was established in 1914.
"Anyone who has never made a mistake has never tried anything new. "

-- Albert Einstein, physicist

ICCH
International Commodities Clearing House
A PEDestrian's Guide
Xtra Credit
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.

User Feedback



| AmosWEB | WEB*pedia | GLOSS*arama | ECON*world | CLASS*portal | QUIZ*tastic | PED Guide | Xtra Credit | eTutor | A*PLS |
| About Us | Terms of Use | Privacy Statement |

Thanks for visiting AmosWEB
Copyright ©2000-2018 AmosWEB*LLC
Send comments or questions to: WebMaster