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how does commercial banking practice affect the money multiplier?

Asked Apr 9, 2012, 06:09 PM —
I don´t understand the question im being asked to write an essay about...I thought i understood the underlying concepts...but i´ve read too much information and it´s all very contradicting! Basically i am asked to examine the impact of commercial banking practice upon the money multiplier. Which general considerations are relevant to credit creation and to the impact of credit upon the ‘macroeconomy´.

Any sort of advice would be greatly appreciated!!

Thank you :)



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