Question: Monetary base is defined as currency in circulation plus banks' deposits at the central bank. (a) Give an example of an event that could lead

Monetary base is defined as currency in circulation plus banks' deposits at the central bank. (a) Give an example of an event that could lead to an increase in the amount of monetary base needed to make a given amount of transaction. (b) Is it possible to make purchases without using monetary base? Illustrate your answer(s) with relevant example(s)

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