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ECO 203 Week 3 DQ 2 The Money Supply (Old)

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Week 3 DQ2

The Money Supply

Why do you think the FED evaluates the money multiplier when making decisions with regard to the money supply? What function does the money supply serve in our economy to influence certain economic variables? Why does the FED like to fight inflation in our economy and is inflation a concern right now given our current economic situation? Respond to at least two of your classmates’ postings


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