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BrittneyABuell BrittneyABuell
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6 years ago
Money supply is linked to the monetary base by the money multiplier. Macroeconomic textbooks tell you that the central bank cannot control the money supply, but it can control the monetary base.
 
  As a result, you decide to specify a distributed lag equation of the growth in the money supply on the growth in the monetary base. One of your peers tells you that this is not a good idea for modeling the relationship between the two variables. What does she mean?
  What will be an ideal response?
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heytameheytame
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BrittneyABuell Author
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6 years ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
njn;l
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Yesterday
this is exactly what I needed
Fanmkreyol
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2 hours ago
Smart ... Thanks!
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