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In what way will each of the following affect the ability of the banks to create money? Will they result in an increase or decrease
In what way will each of the following affect the ability of the banks to create money? Will they result in an increase or decrease in the money supply? In each case briefly state why? Bullet answers are not explanations. a) target reserve ratio decreases b) people hold more cash c) there are not a lot of willing borrowers. d) Banks prefer to hold excess reserves
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