) Illustrate and explain the impacts of a Central Bank reduction of its bank rate when...

) Illustrate and explain the impacts of a Central Bank reduction of its bank rate when an economy has a “liquidity trap” demand for money section.

b) Assume that an increasing number of supermarkets, shops and grocery stores accept credit and debit cards and more consumers use these cards to do their shopping. How will the money multiplier and money supply be affected?

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Rahul Sunny answered 1 year ago

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