If People Choose to Hold Some of a Newly Received

Multiple Choice

If people choose to hold some of a newly received loan as cash instead of keeping it in a checking account,_____.

A) the money supply will not increase as much as it would had borrowers deposited all of the money
B) the money supply will remain unchanged
C) the money supply will decrease as much as it would had borrowers deposited all the money
D) the banking system will collapse
E) the economy will experience a recession