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FOR ALL CALCULATIONS OF THE MONEY SUPPLY USE THE EXPRESSION THAT WE DERIVED: THE MONEY MULTIPLIER it THE MONETARY BASE. DO NOT USE THE SIMPLE

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FOR ALL CALCULATIONS OF THE MONEY SUPPLY USE THE EXPRESSION THAT WE DERIVED: THE MONEY MULTIPLIER it THE MONETARY BASE. DO NOT USE THE SIMPLE C + D DEFINITION TO CALCULATE MONEY SUPPLY. IN THEORY THEY ARE THE SAME, EM PIRICALLY, DUE TO LACK OF COMPLETE DATA, THEY DIFFER SLIGHTLY. Use the text box below to ll in your answers to questions a through e. a) {5 points) Calculate the money multiplier and the money supply for May of 2008 (2008-05-01) b) {5 points) Calculate the money multiplier and the money supply for May of 2009 (2009-05-01)

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