If People Choose to Hold Some of a Newly Received

question 126

Multiple Choice

If people choose to hold some of a newly received loan as cash instead of keeping it in a checking account,the money supply

• A)will not increase as a result of that loan
• B)decreases as a result of that loan
• C)will not increase as much from that point on as it would if borrowers redeposited all of the money because the cash withdrawal increases excess reserves
• D)will not increase as much from that point on as it would if borrowers redeposited all of the money because cash is not included in the money supply
• E)will not increase as much from that point on as it would if borrowers redeposited all of the money because the cash withdrawal decreases excess reserves

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Definitions:

Carrying Capacity

The maximum population size of the species that the environment can sustain indefinitely, given the food, habitat, water, and other necessities available in the environment.

Biotic Potential

the maximum reproductive capacity of an organism or population if resources are unlimited in an ideal environmental condition.

Population Size

The total number of individuals within a specific species or group living in a particular geographical area.

Births

The act or process of giving birth; the emergence of a new individual from its mother's womb.