Assume that Kim deposits $1,500 in currency in the Trusty Bank. Later that same day Akio negotiates a loan for $2,000 at the same bank. What has happened to the money supply as a result of these transactions? Multiple Choice O It has increased by $500. It has decreased by $500. It has not changed.

Assume that Kim deposits $1,500 in currency in the Trusty Bank. Later that same day Akio negotiates a loan for $2,000 at the same bank. What has happened to the money supply as a result of these transactions? Multiple Choice O It has increased by $500. It has decreased by $500. It has not changed.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Assume that Kim deposits $1,500 in currency in the Trusty Bank. Later that same day Akio negotiates a loan for $2,000 at the
same bank. What has happened to the money supply as a result of these transactions?
Multiple Choice
O
It has increased by $500.
It has decreased by $500.
It has not changed.

O
O
O
It has increased by $500.
It has decreased by $500.
It has not changed.
It has decreased by $1,000.
It has increased by $2,000.

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