1. Compare the textbook view of money creation (based on the money multiplier relationship) with the real-world view that profit-seeking banks determine the money supply. If banks are given a license to create money, explain the factors (both market and regulatory factors) that constrain banks ability to expand loans (and therefore money) without limit.
2. Compare and contrast how the FED maintained its FFRT pre-2008 to how it sets it post-2008 in the era of ample reserves. Graph and explain in both cases.