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1. Define what is meant by M1 and M2 money. 2. Explain the three functions of money. [3 marks] 3. Write down the Equation
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1. Define what is meant by M1 and M2 money. 2. Explain the three functions of money. [3 marks] 3. Write down the Equation of Exchange, with a description in words of each variable in the equation, and explain the implications of an increase in the money supply on the price level when all other factors remain the same. 4. Explain what is meant by the Monetarists View. [7 marks] [4 marks]
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1 MI Monetary Base refers to the narrowest definition of money supply which includes physical currency banknotes and coins in circulation and commerci...
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Auditing and Assurance Services A Systematic Approach
Authors: William Messier, Steven Glover, Douglas Prawitt
9th edition
1308361491, 77862333, 978-1259248290, 9780077862336, 1259162346, 978-1259162343
