Question
Suppose the fed would like to reduce the interest rate in the broader markets and decides to buy 10 billion dollars worth of bonds from
Suppose the fed would like to reduce the interest rate in the broader markets and decides to buy 10 billion dollars worth of bonds from the public. It estimates that the excess reserve ratio in the economy is 0.15 and the cash ratio is 0.1. Currently the required reserve ratio is 0.1.
What is the value of the M1 money multiplier? (write the answer to the third decimal place.)
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The Economics of Women Men and Work
Authors: Francine D. Blau, Marianne A. Ferber, Anne E. Winkler
7th edition
978-0190670863, 019067086X, 132992817, 978-0132992817
