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Answer to Question #285287 in Microeconomics for Jordan

Question #285287

Explain critically the relationship between money supply and high powered money

1
Expert's answer
2022-01-09T18:12:39-0500

High-powered money is the liability of the monetary authority that is known as the monetary base. The relationship between Money supply and high-powered money can be expressed as M=m.H. M represents the stock money, H-high powered money and m is the link that connects high powered money and stock money.


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