Henry Trudeau Deposits $2,000 in Currency in the First Street

question 32

Multiple Choice

Henry Trudeau 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.This loan alone will:

• A)increase the supply of money by $2,100.
• B)increase the supply of money by $3,300.
• C)increase the supply of money by $5,400.
• D)decrease the supply of money by $3,300.

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Definitions:

GDP

Gross Domestic Product encapsulates the sum value of every good and service generated within a country's borders over a designated period.

Productive Nonmarket Activities

Economic activities that are productive but do not involve market transactions, such as household work.

Depletion

The reduction in the quantity or value of a resource, such as minerals, forests, or fossil fuels, due to extraction or usage over time.

Resource Base

The total available resources that an economy has access to, including natural resources, labor, and capital.