If the Public Decides to Hold Less Currency and More

question 177

Multiple Choice

If the public decides to hold less currency and more deposits in banks, bank reserves

• A) decrease and the money supply eventually decreases.
• B) decrease but the money supply does not change.
• C) increase and the money supply eventually increases.
• D) increase but the money supply does not change.

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Definitions:

Tourism

The activity of traveling to places for pleasure and exploration.

Transnationals

Corporations or enterprises that operate in multiple countries, transcending national borders in their activities, production, and management.

Economic Refugees

Individuals or groups who are forced to leave their home country due to severe economic hardship, in search of a better standard of living elsewhere.

Internal Migrants

People who move within the boundaries of their own country, typically from rural areas to urban centers, in search of better living conditions or employment opportunities.