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pav-90 [236]
3 years ago
12

If a consumer withdraws money from his deposits at the bank (banking leakage), then the monetary base and money supply Group of

answer choices
Business
1 answer:
Maurinko [17]3 years ago
7 0

Answer:

The correct option is A. will go down.

Explanation:

Note: This question is not complete as the answer choices are omitted. The complete question is therefore provided before answering the question as follows:

If a consumer withdraws money from his deposits at the bank (banking leakage), then the monetary base and money supply

Group of answer choices

A. will go down

B. monetary base will go up and money supply will go down

C. will go up.

D. will remain unchanged

The explanation of the answer is now provided as follows:

The monetary base (or M0) is the total amount of a currency that is either in general circulation or retained in the central bank's reserves in the form of commercial bank deposits.

Money supply a country's entire amount of money in circulation or in existence.

Since each money supply and monetary base has an element of money in circulation, both the monetary base and money supply will go down if a consumer withdraws money from his deposits at the bank (banking leakage).

Therefore, the correct option is A. will go down.

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Edward and Tony are fraternity brothers. Edward has a dinner party to celebrate getting a new job. Tony helps Edward out with th
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Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of ca
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Answer:

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Explanation:

Giving the following information:

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For now, it is better to keep producing in house. If demand increases, Pottery Ranch must outsource some of the production.

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