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Unformatted text preview: Under what circumstances might you expect barter to reemerge in an economy that has fiat money as a means of payment? Analytical Problems 2 What factors should you take into account when considering using the following assets as stores of value? i) real estate ii) stocks iii) government bonds Analytical Problems 3 *Under what circumstances might money in the form of currency be the best option as a store of value? Unit 02 - Money and the Payments System 2-2 Analytical Problems 4 Assuming no interest is paid on checking accounts, what would you expect to see happen to the relative growth rates of M1 and M2 if interest rates rose significantly? Analytical Problems 5 If money growth is related to inflation, what would you expect to happen to the inflation rates of countries that join a monetary union and adopt a common currency such as the euro?...
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This note was uploaded on 02/12/2012 for the course ECON 101 taught by Professor Abrams during the Spring '11 term at Adams State University.
- Spring '11