Part Three: Short Answers 2 points each (total 14 points) 1. From the assigned reading, please explain the Multiplier Effect in association with the money supply. 2. From the assigned reading, please explain the Concept of Velocity in association with the money supply. 3. From the FED Balance Sheet Folder, the next-to-last posting is a comparison from 2007 to 2009 during the Great Recession. Discuss \& describe three major changes in the FED's balance sheet during this time period. They Impact Your Portfolio Nov, 16, 202010:51 AM ET 120 comments Includes: EEM. EFA, GBTC. GLD, IEE, IWM, SLV, SPY, TLT , YNQ EDITED for CLASS Lyn Alden Schwartzer Stock Waves High-probability investing where fundamentals and technicals align! ( 25,788 followers) Summary Inflation comes in three main forms: monetary inflation, asset price inflation, and consumer price inflation. A look into the forces that can cause the various types of inflation. Tying the current economic climate into sociopolitical risks and changes, as it relates to an investment portfolio. Looking for a helping hand in the market? Members of Stock Waves get exclusive ideas and guidance to navigate any climate. Get started today w This article focuses on the topic of inflation. It's often described as though it's binary- either inflation is rising or its falling. However, there are multiple types of inflation, and they have different causes and different outcomes. Having an idea about forward inflation or deflation potential is critical for establishing which asset classes are likely to outperform in any decade. Three Types of Inflation How economists define inflation in part depends on what school of economics they come from. For the sake of this piece, I'm going to break it down into three different types: monetary inflation, asset price inflation, and consumer price inflation. 1) Monetary Inflation Monetary inflation generally refers to an increase in the broad money supply, known as M2. In other words, it's not about prices going up; it's about the amount of money itself going up. Broad money sunolv. M2. refers to all of the various bank