Money is a dynamic factor. How?
Money is a dynamic factor. How?
Money is a dynamic factor because:
(i) It has led to the growth of exchange to infinite limits thus implying an expansion of markets and expansion of aggregate demand.
(ii) It has led to the growth of financial markets. These markets are a source of funds for investment as well as consumption expenditure. Accordingly, the levels of production and consumption have significantly risen over time.
(iii) It has facilitated flow of capital from one place to the other, and from developed countries to less developed countries, implying the emergence of a global economy and multinational corporations.
Briefly, money is a dynamic factor as it has imparted dynamism to the process of production, consumption, investment and exchange.
Money is a dynamic factor because:
(i) It has led to the growth of exchange to infinite limits thus implying an expansion of markets and expansion of aggregate demand.
(ii) It has led to the growth of financial markets. These markets are a source of funds for investment as well as consumption expenditure. Accordingly, the levels of production and consumption have significantly risen over time.
(iii) It has facilitated flow of capital from one place to the other, and from developed countries to less developed countries, implying the emergence of a global economy and multinational corporations.
Briefly, money is a dynamic factor as it has imparted dynamism to the process of production, consumption, investment and exchange.
