In Problem 11, the banks have no excess reserves. Suppose that the Bank of Nocoin, the central
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a. What happens to the quantity of money?
b. Explain why the change in the quantity of money is not equal to the change in the monetary base.
c. Calculate the money multiplier.
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Related Book For
Macroeconomics Canada in the Global Environment
ISBN: 978-0321778109
8th edition
Authors: Michael Parkin, Robin Bade
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