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Why is the value of the money multiplier typically greater

Assignment Help Macroeconomics
Reference no: EM13321711

1. Why does the Fed have greater control over the monetary base than over the money supply?

2.  In April 2011, the money supply, as measured by M1, was approximately $1,917 billion. The monetary base was approximately $2,494 billion.

a. What was the value of the money multiplier?

b. Why is the value of the money multiplier typically greater than 1? What is the key reason that it was less than 1 in 2011?

Reference no: EM13321711

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