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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.
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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

User Andel
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Answer:

C

Step-by-step explanation:

this is the answer bc there is really no effect

User JSharm
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