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Author Question: A reserve requirement of 12.5 percent implies a potential money multiplier of: a. 5. b. 8. c. 12.5. ... (Read 224 times)

jeatrice

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A reserve requirement of 12.5 percent implies a potential money multiplier of:
 a. 5.
 b. 8.
 c. 12.5.
 d. 112.5.

Question 2

Suppose workers do not believe the Fed will implement its announced monetary policy plans and the Fed wants to achieve low unemployment. In this situation the Fed would be best off:
 a. implementing a policy of high money growth.
  b. announcing and implementing a policy of low money growth.
  c. announcing a policy of high money growth and implementing a policy of low money growth.
  d. following a policy that forces the actual inflation rate to coincide with the expected inflation rate.
  e. promoting a low rate of inflation and adjusting actual policy plans to economic conditions.



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kxciann

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Answer to Question 1

b

Answer to Question 2

a





 

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