List two reasons why the Fed can not control the exact size of the money supply
1) The Fed can not control how much money households deposit at banks.
2) The Fed does not control how much banks lend.
These two facts mean the Fed does not have perfect precision in controlling the money supply.
Economics
You might also like to view...
Refer to Figure 7-1. Suppose the government allows imports of leather footwear into the United States. What will be the quantity of imports?
A) Q0 B) Q1 C) Q2 D) Q2 - Q0
Economics
Unions can only achieve wage gains by sacrificing employment
a. True b. False Indicate whether the statement is true or false
Economics