Question

What is meant by the value of money? Is the fisher equation of magnitude a satisfactory explanation of the value of money?​

Answer 1

Answer:

The quantity of goods in general that will be exchanged for one unit of money.

Explanation:

The value of money, then, is the quantity of goods in general that will be exchanged for one unit of money. The value of money is its purchasing power, i.e., the quantity of goods and services it can purchase. ... In other words, the value of money and the general price level are inversely proportions' to each other.