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Unformatted text preview: a. M1 2. Money as a Store of Value a. Concept of Liquidity b. M2 3. Importance of a “good” measure of the money supply C. Money: How do banks create it? 1. Model: Money Supply = MB x money multiplier a. MB = Monetary Base = bank reserves + currency in circulation 2. Multiple Deposit Creation: A fairy tale III: NEXT TIME A. Continue Chapter 10: “Money, Prices, and the Fed”...
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This note was uploaded on 07/31/2008 for the course ECON 2035 taught by Professor Stahl during the Spring '08 term at LSU.
- Spring '08