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One effect of the hoarding by the banks will be a shortage in the money supply, causing interest rate to increase and business lending and
One effect of the hoarding by the banks will be a shortage in the money supply, causing interest rate to increase and business lending and investment to decrease. This has a dampening effect on national output.
Every day we are beginning to hear more and more about the possibility of negative interest rates headed our way. What does this mean in simple terms? Should we welcome it or not?
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