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The impact on this monetary aggregate of extensive monetary aggregate of extensive financial innovation - the changes in the kinds of deposits and services offered by banks- led the central bank to drop M1 as an intermediate target. With the changes in the way the public was holding payments balances, the M1 aggregate no longer had the same reliable link to.................
a. What impact would these financial innovations have on M1?
b. Complete this clipping (at the end).
PLEASE ANSWER WITH A STRAIGH FORWARD (NOT COPIED) ANSWER TO THE QUESTION
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