(b) what would happen to the money supply initially if the public deposited another $20 billion of cash in transactions accounts?

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02-12-2017
Business

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(b) what would happen to the money supply initially if the public deposited another $20 billion of cash in transactions accounts?

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W0lf93 W0lf93 · Answer 1 · 2017-12-14T19:44:48+01:00

W0lf93 W0lf93

14-12-2017

even if the public deposited another $20 or any amount of money billion of cash in transactions accounts it will not change anything because it is the money that already in circulation. as it is not a new money and it is the cash already in transaction it will not affect the banks money transaction.

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