1.5. Practice with money multipliers. Think of the money supply (MS) as equal to either M1 orM2....
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1.5. Practice with money multipliers. Think of the
"money supply" (MS) as equal to either M1 orM2.
a. RR = 5%, Change in reserves =
$10 billion. MM = ?; Change in MS = ?
b. RR = ?, Change in reserves = $1,000, MM = 5; Change in MS =?
c. RR = 100%, Change in reserves =
$10 billion. MM =?;Change in MS =?
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