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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Modern Principles Macroeconomics

ISBN: 124428

2nd Edition

Authors: Tyler Cowen ,Alex Tabarrok

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