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

question 25

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.The 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) may either increase or decrease.
• E) will increase initially,but then return to the original level.

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Definitions:

Vision Or Objectives

Long-term goals or targets that an organization or individual aims to achieve, often guiding decision-making and strategies.

Strength-Is-Weakness Dynamic

A negotiation concept where a party's apparent strengths can be leveraged as weaknesses or vulnerabilities under certain conditions.

Permanent

Characterizing something that lasts indefinitely without change, intended to exist or be used for an indefinite duration.

Public

The general population or community at large, often considered as the audience or stakeholders in a particular context.