the MPC has risen or fallen since the recession of 2008-2009

(a) Do you think the MPC has risen or fallen since the recession of 2008-2009? Explain your reasoning. (b): Economists believe that the current values of the deposit multiplier and the money multiplier are widely divergent. Why might these values differ at present? What (if anything) do you think must happen for them to converge once again? (c) The U.S. has historically low interest rates at present. How would you predict these would impact the value of the dollar on foreign exchange markets? How, in turn, would these low interest rates impact our balance of trade? Explain your answers.

 

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