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Explain the three traditional policy tools that the Federal Reserve can use to influence the level of the money supply

Explain how the money multiplier works. That is, why does an initial net change in deposits lead to a greater change in the money supply?

Consider both the case of an initial increase, and an initial decrease in deposits.

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M91788158
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