If Susan Kalanti deposits 400,000 USD into a saving account at CITIBANK, and you know that CITIBANK, because of the monetary regulations, will loan a maximum of 84% of that amount, then the money supply in the economy is expected to O increase by approximately 1.5 Million USD. decrease by approximately 2.O Million USD. increase by approximately 2.5 Million USD. None of the above.

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter14: Modern Macroeconomics And Monetary Policy
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If Susan Kalanti deposits 400,000 USD into a saving account at CITIBANK, and you
know that CITIBANK, because of the monetary regulations, will loan a maximum of
84% of that amount, then the money supply in the economy is expected to
O increase by approximately 1.5 Million USD.
decrease by approximately 2.0 Million USD.
increase by approximately 2.5 Million USD.
None of the above.
Transcribed Image Text:If Susan Kalanti deposits 400,000 USD into a saving account at CITIBANK, and you know that CITIBANK, because of the monetary regulations, will loan a maximum of 84% of that amount, then the money supply in the economy is expected to O increase by approximately 1.5 Million USD. decrease by approximately 2.0 Million USD. increase by approximately 2.5 Million USD. None of the above.
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