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From course:

Economics A Level

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Question:

How can Banks play in where the LRAS sits?

Author: go kys



Answer:

-Firms need to Borrow off Banks to Invest to Increase their Output - via new Machinery eg -Strong Banking System will promote Growth and more Money Available for Investment, leading to the PPF Growing -Banking System therefore can Positively Impact the LRAS, SRAS and PPF


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go kys
go kys