1.Suppose we have a barter economy, and we needed to compute relative prices for each pair of goods. How many prices would we need to compute if the economy consisted of

a. 15 goodsb. X number of goods

2.Give two reasons why savers sometimes choose to invest indirectly through financial intermediaries.

True or False and Explain why.

a. "Debt instruments that have maturities less than one year are traded in capital markets."

b. " If the inflation rate goes from 8% in year 1 to 5% in year 2 there has been deflation of 3%."