An important aspect of the money supply process is the money multiplier. Go to the CANSIM data
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An important aspect of the money supply process is the money multiplier. Go to the CANSIM data available in the Student Resources section of your MyEconLab website and download Statistics Canada CANSIM II series V37145 (monetary base), V37152 (M1++ (gross)), and V41552801 (M2++ (gross)).
a. Calculate the M1++ money multiplier. What is its average value over your sample period?
b. Calculate the M2++ money multiplier. What is its average value?
c. Compare the two money multipliers.
d. Does it appear that the money multipliers are increasing or decreasing?
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Related Book For
The Economics of Money Banking and Financial Markets
ISBN: 978-0321785701
5th Canadian edition
Authors: Frederic S. Mishkin, Apostolos Serletis
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