. Microsoft company is considering an investment project which costs $3 million today and it's payoff would be $5 at the end of year 7. If the interest rate is 9%, should Microsoft incest in the new project?  2. Using a graph of money market demonstrate what happens to the value of money and the price level if: a) The Fed sells government bonds in open-market operations. b) A decrease in real GDP decreases the demand for money

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A: The Federal Reserve (Fed) buys and sells securities on the open market; this is known as an open…

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