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

question 201

Multiple Choice

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

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

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Definitions:

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