Henry deposits $2,000 in currency in the First Street Bank. Later that same day Jane Harris negotiates a loan for $5,400 at the same bank. After these transactions, the supply of money has:

A. Increased by $2,100

B. Increased by $3,300

C. Increased by $5,400

D. Decreased by $3,300

C. Increased by $5,400

Economics

You might also like to view...

If the Fed promises to conduct a(n) ________ for several years, inflation expectation will be ________

A) contractionary fiscal policy; high B) expansionary monetary policy; high C) contractionary monetary policy; high D) expansionary fiscal policy; low

Economics

The deadweight loss represents the sum of additional consumer and producer surplus should the firm produce the quantity where P = MC rather than where MR = MC

What will be an ideal response?

Economics