Explain impact of ability to create money on economy, Microeconomics

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Explain impact of ability to create money on economy

Discuss the impact of that ability to create money on the economy during an inflationary gap and during a recessionary gap. Considering the higher rates of unemployment and the likelihood of lower prices during a recessionary gap, do banks, with their lending policies, contribute to a recovery?

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Microeconomics: Explain impact of ability to create money on economy

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