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1) Explain why banks can influence the money supply if the required reserve ratio is less than 100% ? 2) Suppose the central bank of

1) Explain why banks can influence the money supply if the required reserve ratio is less than 100% ?

2) Suppose the central bank of Country A unexpectedly decreases the money supply. What will happen to the country As unemployment in the short run and in the long run respectively? with the aid of Phillip-curve diagram

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