Now the Chair calls and asks you how things are going and you tell him/her that you injected $100billion in the system but it didn't work because banks are holding

on to the ER (the banks neverloaned them out, they hoarded them instead). Scenario C: Now you get some calls from bankers and you learn that there has been some 'internalsubstitution' within the M1 money supply. In particular, households prefer to hold more currencyrelative to deposits, i.e., the currency to deposit ratio rises. The new numbers are as follows: C = 900 b D= 1600 b%3D ER =100 b What is the MB? O 1060 O 2500 1160 900 D 800