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(2) In October 2021, the rate of inflation (CPI) piked at a 30-year high of 6.2% compared the level one year before in 2
Posted: Sun Jul 03, 2022 6:50 am
by answerhappygod
- 2 In October 2021 The Rate Of Inflation Cpi Piked At A 30 Year High Of 6 2 Compared The Level One Year Before In 2 1 (33.61 KiB) Viewed 12 times
(2) In October 2021, the rate of inflation (CPI) piked at a 30-year high of 6.2% compared the level one year before in 2020. At the early November 2021 meeting, as a response to high inflation expectation, the Fed approved a plan to gradually reduce its asset purchases of $120 billion a month and slow down its bond-buying program by June 2022. Use your language to explain how this decision will affect money supply? Suppose, in the middle 2022, we have C = 2,000 ($ billion), cr=0.16 and rr=0.20. Then what are the values of D, R, B and M? And how much is the new money multiplier (m)?