Macroeconomics Managing the Buisiness Enterprise Free Essay, Term Paper and Book Report
Macroeconomic Impact on Business Operations
Money evolved from barter, barter is two traders that trade equal value of their services or commodities. There are two limitations in barter. First, the two traders must have, and want to trade, products or services of equal value. Second, as society grows and becomes anonymous, they must both be ready to make the trade at the same time, as the trust of the small group no longer exists. Currency and money developed to deal with these two limitations (Krumm, 2000). The economic growth has truly grown in the past 20 to 30 years; the GDP has declined in this period. In time money has become paper with a President on it, and the reason we have money is how much we are trusted and how much we make. If we have equity, or own goods that are of high value then we are more likely to get a loan, because we will be likely to pay it back with interest attached. When a person goes to a bank and deposits 1000 dollars, that is a demand deposit and therefore they have assets in the bank. When many p......
Word Count: 1743
Page Count: 6.9 (250 words a page / double spaced)
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