Your goal is to increase the money supply by 33.33%. Use the Money supply you found in #9 and increase it by33.33%, then round to the nearest whole number. The target money supply is:
Feedback: IDENTIFY THE TARGET MONEY SUPPLY, CALL IT M* = (4/3) x 2400 = 3200 = M*Table for Individual Question FeedbackPoints Earned:3.0/3.0
11.The money multiplier is stable at the value you found in #8. Use it and your answer from #10 to calculate the appropriate monetary base. Round to the nearest whole number.
Feedback:FEEDBACK: WE KNOW THE MONEY MULTIPLIER IS STABLE AT 2.2642 = MM SO THE ONLY UNKNOWN IS THE APPROPRIATE MONETARY BASE (CALL IT MB*) AND THAT IS CONVENIENT SINCE YOU CAN INFLUENCE THE MB THROUGH OPEN MARKET OPERATIONS3200 = 2.2642 X MB*MB* = 1413.302Table for Individual Question FeedbackPoints Earned:4.0/4.0