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:

Social Justice

Social justice is the pursuit of fairness and equality in society, advocating for the equitable distribution of wealth, opportunities, and privileges within a community.

Equitable Distribution

A principle used in divorce law for the fair and just division of property between spouses.

Macro Social Environment

The broader societal context in which individuals and organizations operate, encompassing cultural, economic, legal, and political forces.

Political Ideology

A set of ethical ideals, principles, doctrines, myths, or symbols of a social movement, institution, class, or large group that explains how society should work, and offers some political and cultural blueprint for a certain social order.