5. Study Questions and Problems #5 Suppose you deposit your paycheck, drawn on another bank. The total money supply in the banking system will_ because: Assets of your bank would increase by a fraction of the amount withdrawn from the other bank. An increase in the assets of your bank by the amount of your paycheck would simply decrease the assets of another bank by the same amount. Assets of the other bank would decrease by more than the amount deposited at your bank.

5. Study Questions and Problems #5 Suppose you deposit your paycheck, drawn on another bank. The total money supply in the banking system will_ because: Assets of your bank would increase by a fraction of the amount withdrawn from the other bank. An increase in the assets of your bank by the amount of your paycheck would simply decrease the assets of another bank by the same amount. Assets of the other bank would decrease by more than the amount deposited at your bank.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter11: The Monetary System

Section: Chapter Questions

Problem 5PA

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