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Explain the Complete Formula for the M1 Money Supply,and Explain

question 21

Essay

Explain the complete formula for the M1 money supply,and explain how changes in required reserves,excess reserves,the currency ratio,the nonborrowed base,and borrowed reserves affect the money supply.


Definitions:

Post Office

A public service or establishment responsible for the collection, sorting, transporting, and delivery of mail to recipients.

Explanandum

This is the phenomenon or event that needs to be explained in scientific or philosophical inquiry.

Explanation

The act of making something clear or understandable by describing the relevant facts or ideas.

Sweater

A knitted garment typically with long sleeves, worn over the upper body.

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