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snow_lady [41]
2 years ago
7

If you deposit $100 of currency into a demand deposit at a bank, this action by itself

Business
1 answer:
Dahasolnce [82]2 years ago
8 0

Answer:

A) Does not change the money supply.

Explanation:

Demand deposits change the monetary base, because the monetary base equals currency plus demand deposits.

However, in itself, a demand deposit does not change the money supply. For the change in the money supply to occur, the bank must loan out some of the money in the deposit.

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