What role do banks have in the process of creating money

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Reference no: EM131161155

Just need short answer questions!

(a) What role do banks have in the process of creating money? Explain how a decrease in the reserve-deposit ratio affects the level of money supply.

(b) What is the textbook version of OkunÆs Law? What are the difficulties associated with estimating this version of OkunÆs Law?

Reference no: EM131161155

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