Sally writes a $10,000 check to Harry who deposits it in the same bank.
A) Both deposits and reserves of depository institutions increase.
B) Both deposits and reserves of depository institutions remain unchanged.
C) Reserves at depository institutions increase,but deposits remain the same.
D) Both deposits and reserves at depository institutions decrease.
E) Reserves at depository institutions decrease,but deposits remain the samE.
Correct Answer:
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