For macroeconomics,banks
A) are similar to other firms.
B) can be abstracted away.
C) play a key role.
D) are similar to households.

Question

Quizplus · Accepted Answer

Banks play a key role in macroeconomics by being intermediaries between savers and borrowers, creating money through their lending activities, and influencing the overall money supply through monetary policy. They also have the capacity to affect the stability of the financial system and the economy as a whole. Therefore, they cannot be abstracted away or considered similar to other firms or households.

For Macroeconomics,banks