Suppose that last year $30 billion in new loans were extended by banks while $50 billion in
Question:
Suppose that last year $30 billion in new loans were extended by banks while $50 billion in old loans were paid off by borrowers.
What happened to the money supply?
a. Increased.
b. Decreased.
c. Stayed the same.
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When new loans are extended by banks it injects mo...View the full answer
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Related Book For
Macroeconomics
ISBN: 9781264112456
22nd Edition
Authors: Campbell McConnell, Stanley Brue, Sean Flynn
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