Banks loan out a proportion

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Reference no: EM132162039

Answer the following:

Question: A deposit of $1,000 will do which of the following to the money supply?

A) it will increase the money supply if banks loan out a proportion of the $1,000

B) it will decrease the money supply if banks do not loan out any of the $1,000

C) The money supply will not change regardless of how much of the $1,000 is loaned out.

D) none of the above will happen.

Reference no: EM132162039

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