Assume that Smith deposits $500 in currency into her checking account in the XYZ Bank. Later that same day, Jones negotiates a loan for $2,000 at the same bank. In what direction and by what amount has the supply of money changed? Multiple Choice   increased by $2,000   decreased by $500   increased by $2,500   increased by $500

Economics (MindTap Course List)
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ISBN:9781337617383
Author:Roger A. Arnold
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Chapter3: Supply And Demand: Theory
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Assume that Smith deposits $500 in currency into her checking account in the XYZ Bank. Later that same day, Jones negotiates a loan for $2,000 at the same bank. In what direction and by what amount has the supply of money changed?

Multiple Choice
  •  
    increased by $2,000
  •  
    decreased by $500
  •  
    increased by $2,500
  •  
    increased by $500
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