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Model of a system with one bank in which payments
Model of a singletier mixedmoney banking system
15 other sections not shown
acceleration principle amount analysis assets assumption autonomous balance of payments bank's capital stock cash central bank money ceteris paribus change in income commercial banking system consumption function current accounts current liabilities curve denote depends deposits determined devaluation discount domestic currency economic units effective demand elasticity equal equation equilibrium income equilibrium level excess reserves firms foreign currency government expenditure households induced net investment J. M. Keynes leads lending potential level of income liquidity preference marginal propensity minimum reserve ratio monetary money creation money illusion money income multiplier national income non-banking sector open market operations open market policy payments surplus period propensity to consume propensity to invest propensity to save quantity of money rate of exchange rate of interest re-discount real income reduced relationship remains unchanged result securities stock of money supply theory transactions transactors transfer payments value of exports voluntary savings