Final answer:
The statement is false; money, even during inflation, remains the most efficient medium of exchange when compared to real estate due to its liquidity and acceptability. Additionally, buyers may pay more than the equilibrium price in the goods market for various reasons.
Step-by-step explanation:
The statement "When prices rise, money is a worse medium of exchange than real estate" is false. Money serves as the most efficient medium of exchange because it is liquid and widely accepted for transactions. When prices rise, this typically indicates inflation, which devalues money aspect over time. However, using real estate as a medium of exchange is impractical due to its lack of liquidity, the complexity of real estate transactions, and the specificity of each property making it difficult to use in everyday transactions.
In contrast, the role of money in an economy is to simplify transactions and make trade more efficient compared to bartering, which would be cumbersome and inefficient.
Regarding the statement, "In the goods market, no buyer would be willing to pay more than the equilibrium price," it is false because buyers may be willing to pay more than the equilibrium price due to factors such as perceived value, urgency, or scarcity of a good.