At one time Milton Friedman proposed that banks be obliged to hold 100% reserves against deposits. If this proposal were adopted, how would the relationship between M1 and the monetary base change? How would the process of financial intermediation be affected by the proposal?

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The Answer of At one time Milton Friedman proposed that banks be obliged to hold 100% reserves against deposits. If this proposal were adopted, how would the relationship between M1 and the monetary base change? How would the process of financial intermediation be affected by the proposal?

At One Time Milton Friedman Proposed That Banks Be Obliged