Multiple Choice
Tony deposits $2,000 in cash at the Last National Bank and the bank credits Tony's chequing account in the amount of $2,000.How does this immediately affect the money supply M1+?
A) M1+ increases by $2,000.
B) The composition of M1+ changes.
C) M1+ increases by $2,000 times the money multiplier.
D) M1+ decreases by $2,000.
Correct Answer:
Verified
Correct Answer:
Verified
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