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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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