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How does commercial banking practice affect the money multiplier?
I don´t understand the question I'm 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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