When economists say that money serves as a unit of account,they mean that money
A)allows people to avoid barter (trading goods for other goods)by using money.
B)is always issued in fixed denominations (for example $1,$5,$10,$20 bills).
C)allows people to value all goods and services in terms of one commodity (money),rather than in terms of several commodities.
D)makes it easier for people to maintain value across time by letting them save it in the form of money,rather than in the form of physical goods that might depreciate over time.

Question

Quizplus · Accepted Answer

Money serves as a unit of account by providing a common measure of value for all goods and services. It allows individuals and businesses to value these goods and services in terms of one commodity (money) rather than having to trade using the barter system, which would require valuing goods and services in terms of several commodities. Money also helps in measuring the value of goods and services over time by providing a stable measurement standard.

When Economists Say That Money Serves as a Unit of Account,they