An increase in ________ leads to an equal ________ in the monetary base in the short run.

Name: An increase in ________ leads to an equal ________ in the monetary base in the short run.
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Question

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When there is an increase in float, it means that there are more funds in the banking system. This allows banks to increase their reserves, which in turn leads to an increase in the monetary base. Therefore, an increase in float leads to an equal increase in the monetary base in the short run.

An Increase in ________ Leads to an Equal ________ in the Monetary

An Increase in Leads to an Equal in the Monetary