Question

When a bank makes a loan:

A. It causes an increase in the money supply.
B.it causes a reduction in the money supply.
C. it can stimulate business activity, but there is no effect on the money supply.
D. it can cause either an increase or a decrease in the money supply depending on the elasticity of supply

Answer 1

C

Step-by-step explanation:

this is the answer bc there is really no effect