If You Deposit $1,000 in Cash in Your Checkable Deposit

question 95

Multiple Choice

If you deposit $1,000 in cash in your checkable deposit at your bank, the quantity of M1 immediately

• A)decreases by $1,000.
• B)changes, but more information about the required reserve ratio is necessary to determine the amount of the change.
• C)increases by $2,000.
• D)does not change in size.
• E)increases by $1,000.

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Definitions:

Biological Bases

The underlying physiological and genetic factors contributing to psychological phenomena and behavior.

Behaviors

Observable actions or reactions of an organism, often in response to its environment, which can be innate or learned.

Gestalt School

A psychological approach that emphasizes understanding the human mind and behavior as a whole, rather than by analyzing its parts.

Köhler

Refers to Wolfgang Köhler, a German psychologist and phenomenologist who significantly contributed to the development of Gestalt psychology.