Macroeconomics
Macroeconomics
13th Edition
ISBN: 9780134744452
Author: PARKIN, Michael
Publisher: Pearson,
Question
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Chapter 8, Problem 20APA

(a)

To determine

Determine how much do the banks lend in the first round of the money creation process.

(b)

To determine

Determine the initial amount of lent flows that back to the banking system as new depositors.

(c)

To determine

Determine the initial amount of lent flows that does not back to the banking system as new depositors.

(d)

To determine

Determine why second round of lending occurs.

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