A double coincidence of wants is more likely to occur when money is used than in a barter trade.

Question

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In a barter trade, two parties need to have goods or services that the other party wants in order to conduct a trade. This requires a double coincidence of wants, which can be difficult to achieve. However, when money is used as a medium of exchange, both parties can exchange goods or services for money, which can then be used to purchase other goods or services. This eliminates the need for a double coincidence of wants and makes trade easier and more efficient.

A Double Coincidence of Wants Is More Likely to Occur