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Overnight interest rate of Central banks
When the central bank buys government securities, it purchases from many individuals, companies and institutions. Deposits and reserves in most banks will increase. Therefore, most banks will want to lend overnight and this will drive down the overnight interest rate.
Hello, I am having difficulty in understanding what multiplier is.
Use a diagram of the open economy model (e.g. fig 32.4 from the text) to illustrate and explain the effect of the following event on the market for loanable funds, the level of net
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