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Other things equal, when U.S. money moves to take advantage of better foreign investment opportunities, then:...

Other things equal, when U.S. money moves to take advantage of better foreign investment opportunities, then:
a. U.S. banks will have excess reserves to loan out
b. the U.S. money supply will decrease
c. the U.S. money supply will increase
d. the reserve requirement for U.S. banks will rise
e. the effect of the U.S. deposit expansion multiplier will be increased
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Answer #1

Other things equal, when U.S. money moves to take advantage of better foreign investment opportunities, then the money supply in the domestic market will decrease as there is an outflow of money.

option(B)

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