When Switch S Is Open, the Ammeter in the Circuit

question 18

Multiple Choice

When switch S is open, the ammeter in the circuit shown reads 2.0 A. When S is closed, the ammeter reading:

• A) increases slightly
• B) remains the same
• C) decreases slightly
• D) doubles
• E) halves

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Definitions:

Reserve Ratio

The fraction of deposits that a bank holds as reserves, either in its own vaults or at the central bank, affecting the bank's capacity to issue new loans.

Money Supply

The sum of all financial resources in the form of cash, coins, and bank account balances present in an economy at a certain time.

Tight Money Policy

A monetary policy strategy used by central banks to slow economic growth by increasing interest rates and reducing the supply of money.

Government Bonds

Fixed-income securities issued by a government to support government spending, typically offering a regular interest payment and repayment of the principal at maturity.