Suppose someone keeps 100 in cash under her pillow one day, Ask an Expert

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Suppose someone keeps $100 in cash under her pillow. One day, she takes it out and deposits it in a checking account.

a. Does this action directly affect the monetary base or the money supply? Explain why or why not.

b. Does the action eventually lead to a change in the monetary base or the money supply? Explain why or why not.

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Corporate Finance, Finance

Category:- Corporate Finance
Reference No.:- M91977493

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