An article in the Economist noted that the money supply in China has grown considerably faster than
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An article in the Economist noted that the money supply in China “has grown considerably faster than” the monetary base. The article also noted that the Bank of China had reduced the required reserve ratio and that households and firms were relying less on currency to settle transactions. Use these last two developments to explain why the money supply in China was growing faster than the monetary base.
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Both the decrease in the required reserve rati...View the full answer
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Related Book For
Money, Banking, and the Financial System
ISBN: 978-0134524061
3rd edition
Authors: R. Glenn Hubbard, Anthony Patrick O'Brien
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