Assume that Kim deposits $1,500 in currency in the Trusty Bank.Later that same day Akio negotiates a loan for $2,000 at the same bank.What has happened to the money supply as a result of these transactions?
A) It has not changed.
B) It has decreased by $1,000.
C) It has increased by $500.
D) It has decreased by $500.
E) It has increased by $2,000.
Correct Answer:
Verified
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