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How does a stimulus program (through the money multiplier) affect the money supply?
The money multiplier is the additional amount of money the banking system generates with each additional dollar of reserves. [ Economists, policymakers and elected officials can use multipliers to model and assess the economic impact of their policy decisions. ]
Expert answered|chikaygoods|Points 180|
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Asked 8/27/2012 11:34:12 PM
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