It is believed,by many,that the underground economy has grown in the United States in recent years causing c to increase and to be volatile.This event implies that the money multiplier should ________ and that the Fed should have a(n)________ job in controlling the money supply.

Question

Quizplus · Accepted Answer

The underground economy increases cash transactions, reducing bank deposits, which decreases the money multiplier. This makes it more difficult for the Fed to control the money supply.

It Is Believed,by Many,that the Underground Economy Has Grown in the United