Scenario D: Now the Chair is not pleased with your work, and calls again. Assuming that the money multiplier is now stable (i.

Scenario D: Now the Chair is not pleased with your work, and calls again. Assuming that the money multiplier is now stable (i.e., the value you found in #8), you need to figure out what to do, in terms of open market operations, to hit the 33.33 percent money growth rate desired by the chair and the FOMC. To do this you must first identify the target money supply. Then you will be able to calculate the needed monetary base and finally you will be able to calculate the amount of open market purchases/sales. Work through these steps in #10 – 12.

Your goal is to increase the money supply by 33.33%. Use the Money supply you found in #9 and increase it by 33.33%, then round to the nearest whole number. The target money supply is:

how do you calculate the or identify the target money supply? I know my Money supply is 2400 and my money multiplier is 2.2642

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