In Macroland There Is $1,000,000 in Currency That Can Either

question 51

Multiple Choice

In Macroland there is $1,000,000 in currency that can either be held by the public as currency or deposited into banks. Banks' desired reserve/deposit ratio is 10 percent. If the public of Macroland decides to hold more currency, increasing the proportion they hold from 50 percent to 75 percent, the money supply in Macroland will ________.

• A)increase.
• B)decrease.
• C)remain the same.
• D)either increase or decrease.

---

Definitions:

Spell Checker

A software tool that identifies and corrects spelling mistakes in a text.

Font Size

A typographic measurement indicating the height and visibility of characters in printed or digital text, impacting readability.

Business Documents

Written records that are used in the operation of a business, including reports, contracts, policies, and manuals.

Graphics

Visual elements such as images, charts, and diagrams used to supplement or enhance information.