2. Define money multiplier. Discuss how actions of the public and banks can cause the money multiplier

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2. Define money multiplier. Discuss how actions of the public and banks can cause the money multiplier to rise or fall. Does the fact that the public and banks can affect the money multiplier imply that the central bank cannot control the money supply? Why or why not?

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Macroeconomics

ISBN: 126164

8th Edition

Authors: Andrew B. Abel, Ben Bernanke, Dean Croushore

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