Suppose that last year $30 billion in new loans were extended by banks while $50 billion in old loans were paid off by borrowers. What happened to the money supply?

Under expansionary monetary supply,a.the economy’s money supply is increased by reducing interest rates,b.the economy’s money supply is reduced by reducing interest rates,c.the economy’s money supply is reduced by increasing interest rates,d.the economy’s money supply is increased by increasing interest rates,

An expansion in the money supply will most likely change the nominal interest rate and aggregate demand in which of the following ways in the short run?

Suppose people are holding $150 million of currency, total deposits in the banking system are $2,500 million, and bank reserves are $500 million. What is the current supply of money?The current supply of money is $ million.

If the monetary base of a country is $7,000. People hold half of their money in the form of currency, and commercial banks hold a quarter of their deposits in reserve. Context: long run, closed economy（use the econ 211 knowledge) If people distrust commercial banks and withdraw deposits, and the central bank does not respond, what is the new money supply?

The actual change in the money supply as a result of an increase in excess reserves will be less than the maximum change if banksGroup of answer choicesdo not lend out all of their excess reservesborrow from the Federal Reservesell some of their government securities to the Federal Reservelend only their excess reserves