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According to the money view, a financial system with too much elasticity is not good because: a. excessive reserves in the banking sector causes banks
According to the money view, a financial system with too much elasticity is not good because:
a. | excessive reserves in the banking sector causes banks to make too many loans | |
b. | excessive expansion of credit creates asset bubbles | |
c. | those with low credit ratings are less likely to get loans | |
d. | businesses are less able to finance productive investment |
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