Question: Explain the statement, In no way does the aggregate quantity of reserves directly constrain the amount of bank lending or deposit creation. This demand

Explain the statement, "In no way does the aggregate quantity of reserves directly constrain the
amount of bank lending or deposit creation.
This demand for base money (reserves) is
therefore more likely to be a consequence rather than a cause of banks making loans and
creating broad money."
Explain the statement, " In no way does the

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