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You help your neighbor paint her house, and she decides to pay you $100 for helping her. She pulls two bills out of her pocket,

You help your neighbor paint her house, and she decides to pay you $100 for helping her. She pulls two bills out of her pocket, a $1 bill and $100 bill to pay you. Then she looks at you and asks the following questions:

  • These two bills have the same size and are made of the same material, but one of them is worth more. Why?
  • If the $100 has very little material value, how does it keep its value (purchasing power) tomorrow or next month?
  • If money is good for the economy, what would happen if the government printed more money and gave each person in the country $50,000? Wouldn't this be awesome?

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