Multiple increase in the money supply

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Reference no: EM131167400

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1. The creation of new bank reserves could lead to a multiple increase in the money supply.

2. Contractionary monetary policy shifts the reserve supply schedule inward.

3. When a government intentionally lowers the value of its currency, that is called depreciation.

4. The Big Mac index uses prices of a common item to predict long-run changes in exchange rates.

5. The currency of the European Union, the euro, was established as part of the Bretton Woods agreements.

Reference no: EM131167400

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