Isabella takes $100 of currency from her wallet and deposits it into her checking account. If the
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Isabella takes $100 of currency from her wallet and deposits it into her checking account. If the bank adds the entire $100 to reserves, the money supply ________, but if the bank lends out some of the $100, the money supply ________.
a. increases; increases even more
b. increases; increases by less
c. is unchanged; increases
d. decreases; decreases by less
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The correct answer is b increases increases by less When Isabella deposits 100 into her checking ...View the full answer
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