Question

The quantity of money in an economy and the _____________________ are inextricably intertwined

a) extraordinary gains that can be made with money
b) value of assets for loans
c) financial stress in the banking system
d) quantity of credit for loans

Answer 1

d) quantity of credit for loans

Step-by-step explanation:

As more quantity is available being for a decrease in required reserve ratio or emission of currency It will increase the bank's money available for loans to companies and families. If the quantity of money decrease it will reduce the amount for loans. Thus,this vaiable are inextricably intertwined.