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Fed evaluating the money multiplier

Question:

Why do you think the Fed evaluates the money multiplier when making decisions with regard to the money supply? What function does the money supply serve in our economy to influence certain economic variables? Why does the Fed like to fight inflation in our economy and is inflation a concern right now given our current economic situation?

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Macroeconomics: Fed evaluating the money multiplier

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Macroeconomics: Fed evaluating the money multiplier

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