Suppose that the central bank buys 1 million of bonds from the Safe Bank. If the Safe

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Suppose that the central bank buys €1 million of bonds from the Safe Bank. If the Safe Bank and all other banks use the resulting increase in reserves to purchase securities only and not to make loans, what will happen to checkable deposits?

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The Economics Of Money, Banking & Financial Markets

ISBN: 126161

1st Edition

Authors: Massimo Giuliodori, Frederic S. Mishkin Kent Matthews

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