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

question 91

Multiple Choice

In Macroland,there is $1,000,000 in currency that can either be held by the public or used by banks as reserves.If the banks' desired reserve-deposit ratio increases from 10% to 15% and the public continues to hold the same amount of currency,the money supply in Macroland will

• A) increase.
• B) decrease.
• C) remain the same.
• D) either increase or decrease.
• E) increase initially,but then return to the original level.

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Definitions:

Postpurchase Cognitive Dissonance

The psychologically uncomfortable state produced by an inconsistency between beliefs and behaviors that in turn evokes a motivation to reduce the dissonance; buyers’ remorse.

Expensive Pair

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Evoked Set

Comprises the alternative brands or stores that the consumer states he or she would consider when making a purchase decision.

Adidas Shoes

A brand of athletic and casual footwear produced by the German multinational corporation Adidas, known for its sports and lifestyle products.