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> money are kept by the people in banks and not released The banks will reinvest this money. (Cf Fractional-reserve banking).
by mafribe 3y ago
> money are kept by the people in banks and not released
The banks will reinvest this money. (Cf Fractional-reserve banking).
- nine_zeros 3y ago> The banks will reinvest this money. (Cf Fractional-reserve banking). Only if there is demand for the money at a high interest rate. The credit boom is dependent on the borrower as well.