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What happened to the money multiplier during when the Fed received the authority to pay interest on reserves and why? Was this a welcome development
What happened to the money multiplier during when the Fed received the authority to pay interest on reserves and why? Was this a welcome development to the Fed and the economy? Why or why not? Explain. Make sure you write out the expression for the money multiplier along with the equation that determines the money supply and refer to it in your answer. When the Fed got the authority to pay interest on reserves, what did they do?
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