Money Supply

Write a paper that discusses money supply. Specifically, assume you were asked to write a three page memo with no more than three graphs. The purpose of the memo is to discuss the role of money supply in an economy. Be sure to discussed the two dominant types of money supply, how money supply is impacted, and the historical context of the US money supply. Particular emphasis should be given to the relationship between money supply and inflation. You should be able to discuss why we have had a huge increase in inflation and yet had little inflation. Make sure to include the money multiplier and how higher money supply should lead into higher rates of economic growth.

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