Question

I WILL FAN AND GIVE MEDAL HELPP

Allen deposits $2,000 in his local bank earning 2 percent interest annually on his deposit. Jessica borrows $1,000 from the same bank and is charged an annual 7 percent interest rate. How do these two practices affect the money supply in the community?

In Jessica's case, but not Allen's, the money supply decreases.

In Allen's case, but not Jessica's, the money supply decreases.

In both Allen and Jessica's cases, the money supply increases.

In neither Jessica nor Allen's cases does the money supply increase.

Anyone can help?

Answer 1

@WinryRockbell @satellite73 @ganeshie8 ??

Answer 2

Can anyone help me please? I just need this answer before midnight

Answer 3

This should help out.

http://www.csun.edu/sites/default/files/macro6_0.pdf

Answer 4

@jabez177

Answer 5

What do you think ?

Answer 6

ummmm.....

Answer 7

I'm a bit confused on this one also, let me Re-read it again.

Answer 8

Ok ill re-read it too

Answer 9

I think B. But i'll look at it further.

Answer 10

ok im still processing it and trying to understand it better

Answer 11

Me too, it is a bit hard...

Answer 12

yeah

Answer 13

@clayton4christ we are a bit stuck on this...

Answer 14

Lemmme see :)

Answer 15

thank you :)

Answer 16

Now I think it's A. Because it DECREASES.

Answer 17

I'm pretty sure it's A

Answer 18

A makes the most sense. We notice that Jess is charged. which means she lost money. While Al gains. so he got more money :)

Answer 19

But what does @ClAyToN4ChrIsT Say ?

Answer 20

ok :D ill put A then thanks guys i appreciate it :)

Answer 21

Sure !

Answer 22

For sure :)

Answer 23

I typed to slow.