In Macroland, Currency Held by the Public Is 2,000 Econs

question 70

Multiple Choice

In Macroland, currency held by the public is 2,000 econs, bank reserves are 300 econs, and the required reserve/deposit ratio is 10 percent. If the Central Bank raises the required reserve/deposit ratio making the new desired ratio equal to 15 percent, then the money supply in Macroland will ________ to ________ econs, assuming that the public does not wish to change the amount of currency it holds.

• A)increase; 4,000
• B)increase; 5,000
• C)decrease; 4,000
• D)decrease; 5,000

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Definitions:

Organizational Change

Organizational change involves the process of modifying an organization's structure, strategies, operational methods, technologies, or organizational culture to effectuate change and achieve desired outcomes.

Systematic Collection

A methodical process of gathering data, resources, or items that is organized and structured to achieve specific objectives.

Impending Organizational Change

Upcoming or anticipated alterations in the structure, policies, or operations of an organization, which may impact its employees and processes.

Change-supportive Perceptions

The way individuals view and interpret change within an organization, often affecting their readiness and support for the change.