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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- Spring '08
- Fed, Revised Q4 productivity, payment B. Money, SUBSTANCE A. Money, I. BUSINESS A.