Econ (Finance) hw help: how savings affects money supply

Posted on 2013-11-25 16:19:00 in Finance by CHIP

When a bank grants a loan to a customer who gets the funds and keeps it at home for a while, the money supply will:



A. Not change because demand deposits did not go up.

B. Increase.

C. Not change because the money was not spent

D. Decrease.

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