Multiple Choice
Suppose that in a country people gain more confidence in the banking system and so hold relatively less currency and more deposits.As a result,bank reserves will
A) decrease and the money supply will eventually decrease.
B) decrease and the money supply will eventually increase.
C) increase and the money supply will eventually decrease.
D) increase and the money supply will eventually increase.
Correct Answer:
Verified
Correct Answer:
Verified
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