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.

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Definitions:

Psychosurgery

Surgical operations on the brain to relieve severe mental disorders, such as severe obsessive-compulsive disorder or major depressive disorder.

Brain Tissue

The soft, complex organ substance in the brain, consisting of neurons and glial cells, vital for neurological function.

Electric Current

The flow of electric charge through a conductor, typically measured in amperes (A).

Lobotomies

Surgical procedures that involve severing connections in the brain's prefrontal cortex, historically used to treat mental illness.