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(04.06 MC) In a banking system with limited reserves, which of the following best explains why a monetary policy cannot help a country remove the
(04.06 MC) In a banking system with limited reserves, which of the following best explains why a monetary policy cannot help a country remove the inflationary gap in the economy? (1 point) A crowding out effect reduces private investment. An increase in taxes discourages investment in the economy. An increase in the reserve ratio does not translate to changes in the interest rate quickly. Buying of securities leads to a decrease in the amount of credit in the economy. Government spends too much on the unnecessary areas
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