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commodity money and fiat money
Dear OTA: Could you please answer the following questions on monetary policy to better help me understand economics.Thank you very much!
Question 1:Describe the differences between commodity money and fiat money, making sure to explain what makes fiat money work.
Question 2:Define and explain the money multiplier. Identify the change to the money supply in the following situation: The required reserve ratio is 12.5 percent and the Fed increases the monetary base by $100.
Question 3:Describe the monetary policy tools the Fed can use to affect the monetary base.
Question 4:Compare and contrast expansionary and contractionary monetary policies.
Question 5:Identify and describe the means by which the Fed can affect the money multiplier. How do changes in policy carry through to the economy?
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