Explain how banks create money.

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Macroeconomics

ISBN: 978-1464168505

5th Canadian Edition

Authors: N. Gregory Mankiw, William M. Scarth

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Question Posted: Dec 31, 2015 01:40 AM

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Explain how banks create money.

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In a system of fractionalreserve banking banks create money because they ordinarily keep only a fraction of their deposits in reserve They use the res...View the full answer

Macroeconomics

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