=+2. The Fed wants to increase the money supply (which is currently 4,000) by 200. The money

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=+2. The Fed wants to increase the money supply (which is currently 4,000) by 200. The money multiplier is 3 and people hold no cash. For each 1 percentage point the discount rate falls, banks borrow an additional 20.

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Economics

ISBN: 9780071214476

5th Edition

Authors: David Colander

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