Problem
1. Describe the three primary functions money performs in an economy.
2. What are open market operations? What open market operation can the Federal Reserve conduct to increase the money supply?
3. What are the M1 and M2 monetary aggregates?
4. What key assumption of classical economists provides the basis for their analysis of the relationship between money and other economic variables?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.