Ekman
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- Oct 23, 2014
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- 2015
Have a read of pg 289 in the Dixon textbook. By printing money, there is an increase in money supply circulating in the entire economy, not the short term money market. This will lead to inflation which will require higher levels of interest rates.I strongly disagree. A 'generic' question would beg for mindless regurgitation. The compromise there is an effective discriminator.
That can't be right. An increase in the banks' funds will mean there is an oversupply, decreasing the interest rate.