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Following the financial crisis in 2008, the Federal Reserve began injecting the banking system with...

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Accounting

Following the financial crisis in 2008, the Federal Reserve began injecting the banking system with massive amounts of liquidity, and at the same time, very little lending occurred. As a result, the M1 money multiplier was below 1 for most of the time from October 2008 through 2011. Is it possible for the money supply to remain the same while the money multiplier declines? Why or why not?

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