If the public switches from doing most of its shopping with currency to using checks instead and the central bank takes no action, the money supply will: Select one: O a. increase. b. not change. Oc. either increase or decrease. d. decrease.

If the public switches from doing most of its shopping with currency to using checks instead and the central bank takes no action, the money supply will: Select one: O a. increase. b. not change. Oc. either increase or decrease. d. decrease.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter24: The Influence Of Monetary And Fiscal Policy On Aggregate Demand

Section: Chapter Questions

Problem 1CQQ

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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

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If the public switches from doing most of its shopping with currency to using checks instead and the central bank takes no action, the
money supply will:
Select one:
a. increase.
b. not change.
c. either increase or decrease.
d. decrease.

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