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For this part of the project, you’ll collect data on various monetary aggregate measures from the...

For this part of the project, you’ll collect data on various monetary aggregate measures from the FRED website.

M1 Money Multiplier, (MULT), 2007 – current year

Target Federal Funds Rate: Lower Limit (DFEDTARL), Target Federal Funds Rate: Upper Limit (DFEDTARU), AND Effective Federal Funds Rate (FEDFUNDS), 2016 – current year

1. What is the current M1 money multiplier? What does this number mean in how money in the money supply is “created”?

2. Wht is the most recent federal funds rate target range (i.e., lower limit and upper limit)? What is the most recent effective federal funds rate? Why is the federal funds rate so important in an economy?

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