Chloe takes $100 of currency from her wallet and deposits it into her checking account. If the bank adds the entire $100 to reserves, the money supply _____, but if the bank lends out some of the $100, the money supply _____. a. increases, increases even more b. increases, increases by less c. is unchanged, increases d. decreases, decreases by less
Brief Principles of Macroeconomics...
Brief Principles of Macroeconomics...
Solutions
Chloe takes $100 of currency from her wallet and deposits it into her checking account. If the bank adds the entire $100 to reserves, the money supply _____, but if the bank lends out some of the $100, the money supply _____.
a. increases, increases even more
b. increases, increases by less
c. is unchanged, increases
d. decreases, decreases by less
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