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Question # 00017562 Posted By: mac123 Updated on: 06/13/2014 03:26 PM Due on: 06/30/2014
Subject Finance Topic Finance Tutorials:
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Q1

How could rapid inflation undermine money’s ability to perform each of its four basic jobs?

Q2

The money multiplier gives the maximum amount of potential change in the money supply due to a change in reserves. It is equal to the reciprocal of the required reserve ratio. If the reserve ratio is 25%, what is the money multiplier. What is this number telling us?


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  1. mac123
    Tutorial # 00016972 Posted By: mac123 Posted on: 06/13/2014 03:28 PM
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