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The International Monetary fund (IMF) concluded the Article IV consultation on Fiji. The IMF recommended that fiscal consolidation should be primarily expenditure based. Elaborate on
- The International Monetary fund (IMF) concluded the Article IV consultation on Fiji. The IMF recommended that fiscal consolidation should be primarily expenditure based. Elaborate on the statement.
- The private sector holds $40 billion in notes and coins. The banking system has deposits totaling $160 billion, against which they hold reserves of $10 billion. They currently keep $3 billion of their reserves in their tills or vaults to meet day-to-day withdrawals, and $7 billion at the Reserve Bank. The banks also own liquid government securities worth $6 billion. a. Calculate the money supply. b.Calculate the money multiplier
- Elaborate on the statement "money multiplier is far less than the simple deposit multiplier"
- "The Reserve Bank can perfectly control the amounts of reserves in the system". Is this statement true, false or uncertain? Explain.
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