Posted: March 6th, 2014
Monetary Policy and Federal Reserve
1. Why do virtually all societies create something to function as money?
2. How did the combination of increased holding of excess reserves by banks and currency by the public lead to bank failures in the 1930s?
3. What are the three primary reasons for the demand of money?
4. if normal GDP is $200 billion and the money supply is $50 billion, what must velocity be? Why?
2. How did the combination of increased holding of excess reserves by banks and currency by the public lead to bank failures in the 1930s?
3. What are the three primary reasons for the demand of money?
4. if normal GDP is $200 billion and the money supply is $50 billion, what must velocity be? Why?
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