Solved: Banking system and the creation of money through lending, Macroeconomics

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Banking system and the creation of money through lending

Question:

Given that the economy grows (is allowed to grow) through the banking system and the creation of money through lending, if one market is down (i.e people are spending more on other goods) are we to assume that these other companies that are facing increased demand will borrow enough (to expand) to counter balance the amount the depressed market would have borrowed - to bring in more money into the economy?

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Macroeconomics: Banking system and the creation of money through lending

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