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Consider a world in which there is no currency and depository institutions issue only chequable deposits. The desired reserve ratio is 25 percent. Scotiabank receives
Consider a world in which there is no currency and depository institutions issue only chequable deposits. The desired reserve ratio is 25 percent. Scotiabank receives $6,000 in new deposits. What ultimately happens to the money supply in the banking system? Select the correct choice below and, if necessary, fill in the answer box to complete your choice. A. The money supply in the banking system ultimately decreases by $ . (Enter your response as a whole number.) B. The money supply in the banking system ultimately increases by $ . (Enter your response as a whole number.) C. The money supply in the banking system ultimately does not change
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