Solved: What is the implication for the money supply, Microeconomics

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What is the implication for the money supply

Assignment:

150 words Min

Money Supply

During the financial crisis of 2007-2008, the governor of the Bank of Canada expressed concern that the commercial banks were "hoarding" cash rather than extending a more appropriate volume of loans. Why might the banks do this and what is the implication for the money supply?

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Microeconomics: What is the implication for the money supply

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