Question
If reserves in the banking system increase by Sh. 1 Billion because the Central Bank lends Sh. 1 Billion to financial institutions, and checkable deposits
If reserves in the banking system increase by Sh. 1 Billion because the Central Bank lends Sh. 1 Billion to financial institutions, and checkable deposits increase by Sh. 9 Billion, why isn't the banking system in equilibrium? What will continue to happen in the banking system until equilibrium is reached? Show the T-account for the banking system in equilibrium.
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Consumer Behaviour
Authors: Evans, Martin Evans
2nd Edition
0470994657, 9780470994658
