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1. Cost of money Everyone uses money, and it is important to understand what factors affect the cost of money, Consider the following scenario: Your

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1. Cost of money Everyone uses money, and it is important to understand what factors affect the cost of money, Consider the following scenario: Your accountant has convinced you that you should invest your bonus from this year into your retirement account-Instead of buying a new sports car because of the high expected return on the investment. Determine which of these fundamental factors is affecting the cost of money in the scenario described: Inflation O Risk Time preferences for consumption

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