CHAPTER 1
The Quantity Theory
Demand for Money
Economists view money like any other good or service, with one exception: money does not provide a direct utility, whereas most other goods do. We enjoy eating chocolates, taking a drive, going on a vacation, and so forth. There are numerous other things in life that do not have direct utility. For example, a television set does not have a direct utility by itself, as it is useless without a television program. We demand television sets because television programs have direct utility. Most durable equipment, such as washing machines, automobiles, and printers, provide indirect utilities; they are valued for the services they provide. One can split hairs and claim that some people might like a car ...
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