The money supply has decreased from $2.75 trillion to $2.25 trillion. Which of the following could have caused this decrease? Select one: O a. consumers withdraw deposits O b. banks hold fewer excess reserves just in case Oc. purchase of securities O d. a decrease in the discount rate

The money supply has decreased from $2.75 trillion to $2.25 trillion. Which of the following could have caused this decrease? Select one: O a. consumers withdraw deposits O b. banks hold fewer excess reserves just in case Oc. purchase of securities O d. a decrease in the discount rate

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Monetary System

Section: Chapter Questions

Problem 10PA

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Question

The money supply has decreased from $2.75 trillion to $2.25 trillion. Which of the following could have caused
this decrease?
Select one:
O a.
consumers withdraw deposits
O b. banks hold fewer excess reserves just in case
O c. purchase of securities
O d. a decrease in the discount rate
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