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During a recession suppose the banks did not hoard the money and instead were lending it out as hoped by the Central Bank of Canada.

During a recession suppose the banks did not hoard the money and instead were lending it out as hoped by the Central Bank of Canada. However, this did not help boost investment by firms or consumption by households. Why do you think a situation like this could happen: when banks are lending easily but the economy is not picking up? What should the government do?

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