Question: Course : Monetary Theory question 1 Explain two ways by which the Banque du Liban can increase the monetary base. Why is the effect of

Course : Monetary Theory

question 1 Explain two ways by which the Banque du Liban can increase the monetary base. Why is the effect of BDL actions on bank reserves less exact than the effect on the monetary base?

question 2 Explain two reasons why the Fed does not have complete control over the level of bank deposits and loans. Explain how a change in either factor affects the deposit expansion process.

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