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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Essentials Of Economics

ISBN: 9780357723166

10th Edition

Authors: N. Gregory Mankiw

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