Question: Question 4 (a) The model of multiple deposit creation or contraction outlines a few assumptions. Elaborate FOUR (4) assumptions of multiple deposit creation process. (b)

Question 4

(a) The model of multiple deposit creation or contraction outlines a few assumptions. Elaborate FOUR (4) assumptions of multiple deposit creation process.

(b) Elaborate on the FIVE (5) factors/determinants that affect the money multiplier through excess reserves.

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