Some people see the government as being more heavily involved in taking sides than in serving the common interest

Money is any item that

A) serves as a medium of exchange for goods and services. B) can be converted into silver with relatively little loss in value. C) can be converted into gold with relatively little loss in value. D) facilitates a connecting link between credit instruments and debt instruments.

Assume a simplified banking system subject to a 25 percent required reserve ratio. If there is an initial increase in excess reserves of $100,000 . the money supply:

a. increases $100,000 b. increases $400,000. c. increases $125,000 d. decreases $500,000.