Multiple Choice
In Macroland,currency held by the public is 2000 econs,bank reserves are 300 econs,and the desired reserve-deposit ratio is 10%.If the central bank prints an additional 200 econs and uses this new currency to buy government bonds from the public,the money supply in Macroland will increase from ________ econs to _________ econs,assuming that the public does not wish to change the amount of currency it holds.
A) 2,000;2,200
B) 2,300;2,500
C) 3,000;5,000
D) 5,000;7,000
E) 5,300;7,500
Correct Answer:

Verified
Correct Answer:
Verified
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