Why is it that calculated income multipliers

Reference no: EM13899554

1. Why is it that calculated income multipliers are often overestimated?

2. Which Fed policy is easier to implement, targeting the Federal funds rate or targeting the money supply? Elaborate on why this is.

3. Which do you think is a more effective macroeconomic tool to manage the economy, fiscal policy or monetary policy? Why?

Reference no: EM13899554

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