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c) Calculate the Money Multiplier for question 1. a.) based on its computed change in money supply, and calculate the Money Multiplier for question 1.

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c) Calculate the Money Multiplier for question 1. a.) based on its computed change in money supply, and calculate the Money Multiplier for question 1. b.) based on its computed change in money supply. What does this imply about the relationship between the public's desire for holding currency and the money multiplier? Which scenario will contribute more to increase in money supply? 2) Explain how each of the following situations changes quantity of money (money supply) in the economy, based on its computed change in money supply. a) The Federal Reserve System buys bonds b) The Federal Reserve System auctions credit c) The Federal Reserve System raises the discount rate d) The Federal Reserve System raises the reserve requirement

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