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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 231 times)

jeatrice

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on: Jun 30, 2018
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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Reply #1 on: Jun 30, 2018
Answer to Question 1

b

Answer to Question 2

a


jeatrice

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Reply #2 on: Jun 30, 2018
Thank you :)


kxciann

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Reply #3 on: Jun 30, 2018
Happy to help you


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