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1,  Discuss how the money supply is measured and the four key functions of money discussed in the text Chapter 2 and in the Education: Money and Inflation video. Use examples from everyday life (e.g. saving, spending, accounting) in your post.

2, Explain why there is an inverse relationship between the price of bonds and the relevant interest rate.  Explain the effect of each of the following upon interest rates and upon the price of bonds:

  • Maturity
  • Risk
  • Inflation

 

 

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