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1. If history repeats itself and we see a decline in the rate of money growth, what might you expect to happen to 1) real

1. If history repeats itself and we see a decline in the rate of money growth, what might you expect to happen to 1) real output? 2)the inflation rate? and 3) interest rates? Why?

2. Can you think of any financial innovation in the past ten year that has affected you personally? Has it make you better off or worse off? Why?

3. How does the current size of the U.S. budget defict campare to the time period since 1950?

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