Suppose that households in the us switched some of their, Microeconomics

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Suppose that households in the us switched some of their

Suppose that households in the US switched some of their wealth out of their checking accounts and into short term bank CD's. If banks use all excess reserves to support increased lending, what is the effect on this household behaviour on the overall volume of bank lending? What is its effect on the level of M1?

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Microeconomics: Suppose that households in the us switched some of their

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