If you deposit $1,000 in cash in your checkable deposit at your bank, the quantity of M1 immediately
A)decreases by $1,000.
B)changes, but more information about the required reserve ratio is necessary to determine the amount of the change.
C)increases by $2,000.
D)does not change in size.
E)increases by $1,000.

Question

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The Answer of If you deposit $1,000 in cash in your checkable deposit at your bank, the quantity of M1 immediately
A)decreases by $1,000.
B)changes, but more information about the required reserve ratio is necessary to determine the amount of the change.
C)increases by $2,000.
D)does not change in size.
E)increases by $1,000.

If You Deposit $1,000 in Cash in Your Checkable Deposit