Assume Elizabeth has twenty dollars. Construct a set of money-using trades that clears the market.Comment on your answer.
1(a). First, explain the concept of the money multiplier. Then from the information that the narrow money supply (M1) in a hypothetical Canadian economy [with a competitive banking system in which banks produce only demand deposits] is $1750 million,and the idle excess reserves drain coefficient (e) is 3%, the desired cash reserve ratio (r) for […]