Harry gets $1000 in currency from his grandfather when he graduates from college. He deposits these funds into his checking account. What is the impact on the monetary base of Harry's deposit?
A. The monetary base did not change.
B. The monetary base increased by $1000.
C. The monetary base decreased by $1000.
D. The monetary base increases by more than a $1000.
Answer:A
Harry gets $1000 in currency from his grandfather when he graduates from college. He deposits these funds into his checking account. What is the impact on the monetary base of Harry's deposit?
A. The monetary base did not change. B. The monetary base increased by $1000. C. The monetary base decreased by $1000. D. The monetary base increases by more than a $1000.