Question

If the fed credits alex's checking account with $8,000 and alex's bank decides to keep the entire $8,000 in the form of reserves instead of lending it out, how much does the money supply increase?

Answer 1

If the fed credits alex's checking account with $8,000 and alex's bank decides to keep the entire $8,000 in the form of reserves instead of lending it out $8,000 will be the money supply increase

In economics, supply is referred to as the total quantity of a particular good or service that a supplier makes available to customers at a particular time and price. Usually, market activity determines it. For instance, increased demand might prompt a provider to boost supply.

In terms of economics, supply refers to the quantity of items that a person or firm offers to the market, which is equivalent to the total amount that they produce at one particular time. For instance, if Apple produces 100 iPhones, then this is the quantity that is sold.

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