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OpenStudy (dantefemboy):

Bank loans help the economy by __________. A. decreasing the interest rate B. increasing the employment rate C. decreasing the exchange rate D. increasing the money supply

OpenStudy (dantefemboy):

My thoughts are all towards A.

OpenStudy (anonymous):

hmm

OpenStudy (anonymous):

i think D. what do you think?

OpenStudy (dantefemboy):

@King.Void. @Librarian @paki

OpenStudy (dantefemboy):

@fierstar123

OpenStudy (librarian):

D is correct. Because Bank loans help the economy by increasing the money supply Central Banks Can Increase the Money Supply, Even If Banks Do Not ... In today's fiat-money world, money is mostly produced through bank lending. ... [ it issues new money, thereby increasing the economy's money stock mises.org/daily/5621/

OpenStudy (anonymous):

If they increase the intrest rate they are asureing that the economy is going up, Banks don't nessarily give jobs to EVEYONE so employment is out of the question, And exchange is basicly what the bank does! The bank does not make money so it cannot increase money unless it creates it. So after all that, what do you think?

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