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

question 47

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%.If the public of Macroland decides to hold more currency, increasing the proportion they hold from 50% to 75%, the money supply in Macroland will ______.

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

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Definitions:

Managing Expectations

The process of setting and communicating realistic assumptions about outcomes or behaviors in various situations to avoid disappointment.

Low Socioeconomic Status

A term that describes individuals or groups who have limited access to financial, educational, and social resources.

Occupational Influence

The impact that one's job or career choice has on their lifestyle, personality, and personal choices.

Male-Dominated

Refers to fields, industries, or environments where men significantly outnumber women or hold most positions of power and influence.