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Describe the process of money multiplication

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1. Describe the process of money multiplication. What is the role of the central bank and commercial banks in the process? What do you think happens to the money multiplier in a boom, and why?

2. Australian money supply (specifically the M3 monetary aggregate) grew from $1,627.6 billion in January 2014 to $1,859.81 billion in February 2016. What % increase was that?

Reference no: EM131038858

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