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September 11, 2020

1. Explain the following monetary aggregates: M1 and M2.2. D

1. Explain the following monetary aggregates: M1 and M2.2. Do bondholders fare better when the yield to maturity increase or when it decrease? Why?3. If the yield curve suddenly became steeper, what does this imply with respect to interest rates and why?4. Central banks (like the Federal Reserve Bank) have a major problem in the conduct of monetary policy because of lags. Briefly explain.

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