Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 30 - Part X - Money Growth and Inflation - Problems and Applications - Page 656: 7

Answer

The three functions of money are a medium of exchange, a unit of account, and a store of value.

Work Step by Step

Inflation affects money as a store of value since inflation decreases the purchasing power of a dollar over time. Otherwise, inflation doesn't affect the other two functions of money.
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