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      04-21-2011, 09:25 PM   #23
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The Money Multiplier process gives us an idea if the maximum possible expansion in the economy's money supply. Can you think of a reason why the money supply might not expand to the maximum extent possible? Think of some events that have occurred recently in the credit markets and business community to help you develop your answer.
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      04-21-2011, 09:27 PM   #24
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Short answer, politics.

Moar: http://en.wikipedia.org/wiki/Monetary_policy
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      04-21-2011, 09:28 PM   #25
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Because the money multiplier is a cripple
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      04-21-2011, 09:30 PM   #26
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Quote:
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Short answer, politics.

Moar: http://en.wikipedia.org/wiki/Monetary_policy
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Because the money multiplier is a cripple
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