Use the Following to Answer Questions

question 216

Multiple Choice

Use the following to answer questions :
Scenario: Money Supply Changes II
Charlotte withdraws $8,000 from her checkable bank deposit to pay tuition this semester. Assume that the reserve requirement is 20% and that banks do not hold excess reserves.
-(Scenario: Money Supply Changes II) Look at the scenario Money Supply Changes II. After the withdrawal, reserves _____, and checkable deposits _____.

• A)increase by $8,000; increase by $8,000
• B)increase by $1,600; decrease by $1,600
• C)decrease by $8,000; decrease by $8,000
• D)decrease by $1,600; decrease by $1,600

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Definitions:

Health Care Services

are a range of services provided by professionals to maintain or improve an individual's health, including prevention, diagnosis, treatment, and rehabilitation.

Social Security

A government program that provides monetary assistance to people with an inadequate or no income.

Aggregate U.S. Health Care Spending

The total amount of money spent on health care services in the United States over a specified period.

GDP

Gross Domestic Product; the total market value of all goods and services produced within a country in a specific time period.