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

question 111

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 decreases from 10% to 5% 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:

Inner Conflict

A psychological struggle within oneself, often between competing desires or needs.

Dysfunctional

Referring to something that is not operating normally or effectively, often applied to behaviors, processes, or relationships.

Loyalties

A strong feeling of support or allegiance, often to a person, group, cause, or country.

Low Conformers

Individuals who think independently, solve problems creatively, and often cause some conflict in the process.