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Assignment: Macroeconomics
Question A. What are the inherent disadvantages of a barter system?
Question B. Calculate M1 and M2 using details from the table given below.
Value (in millions)
Currency
$75
Checkable deposits
25
Traveler's checks
01
Savings deposits
251
S Small-denomination time deposits
75
money market mutual fund shares
50
Question C. List and describe the four functions of money.
Question D. In an essay no less than 300 words, describe how banks can create money.
Imagine a firm that hires two types of workers – some withcomputer skills and some without. If technology advances so thatcomputers become more useful to the firm, What happens toequilibrium wages? Explain, using appropriate diagrams.
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