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Business, 12.03.2020 00:05 camp591

For each of the following changes, decide whether it would cause the money multiplier (m) to increase or decrease (NOTE: in most cases you will have to first think in terms of how the change would affect ER/D or C/D or rD , and then decide how the change in that variable would affect the money multiplier). (6pts) Question 2 - For each of the following changes, decide whether it would cause the money multiplier (m) to increase or decrease (NOTE: in most cases you will have to first think in terms of how the change would affect ER/D or C/D or rD , and then decide how the change in that variable would affect the money multiplier). Strong economic growth increases income and wealth Choose the match for Strong economic growth increases income and wealth The Fed raises the required reserve ratio Choose the match for The Fed raises the required reserve ratio Congress eliminates the FDIC and there is no more deposit insurance Choose the match for Congress eliminates the FDIC and there is no more deposit insurance The Trump administration significantly raises marginal tax rates Choose the match for The Trump administration significantly raises marginal tax rates The Fed stops paying interest on excess reserves held by banks at the Fed Choose the match for The Fed stops paying interest on excess reserves held by banks at the Fed Banks significantly increase the interest rate they pay on demand deposits

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For each of the following changes, decide whether it would cause the money multiplier (m) to increas...
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