What role do banks have in the process of creating money, Business Economics

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What role do banks have in the process of creating money

Just need short answer questions!

(a) What role do banks have in the process of creating money? Explain how a decrease in the reserve-deposit ratio affects the level of money supply.

(b) What is the textbook version of OkunÆs Law? What are the difficulties associated with estimating this version of OkunÆs Law?

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