1. If you use an online payment system such as PayPal to purchase goods or services on the Internet, does this affect the M1 money supply, the M2 money supply, both, or neither? Please also explain and support your argument using the text and at least one journal article.  400 words

2 . Suppose you are in charge of your company's financial department, and you have to decide whether to borrow short or long-term. Checking the news, you realize that the government is about to engage in a significant infrastructure plan in the near future. o Requirements: Predict what will happen to interest rates. Will you advise borrowing short or long-term? Please also explain and support your argument using the text and at least one journal article. 400 words