In Macroland there is $1,000,000 in currency that the public can hold as currency or deposit in banks. The desired reserve/deposit ratio of banks is 10%. If the Macroland public decides to hold more currency, increasing the proportion they hold from 50% to 75%, the money supply in Macroland ?

A) increase.

B) decrease.

C) stay the same.

D) increase or decrease

Answer rating: 100% (QA)

Question Description In Macroland there is 1000000 in currency that the ... View the full answer