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You find a $1,000 bill hidden beneath the floorboards in your house and decide to deposit it in your checking account. On the same day,
You find a $1,000 bill hidden beneath the floorboards in your house and decide to deposit it in your checking account. On the same day, the Fed decides to buy $1,000 in government securities from your bank. Assume that there is a 10 percent reserve requirement. True or False: The Fed's action creates more money in the economy. True FalseWhich of the following are problems faced by the Fed in controlling the money supply? Check all that apply. Money multiplier inaccuracy An outside lag The price shock The income lag
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