The following question deals with the role of banks in the monetary system. Suppose that a household makes a deposit of $2000 dollars in a bank. What do the balance sheets look like for the first thre
a) Assets increase by $2000; liabilities increase by $2000
b) Assets increase by $2000; liabilities decrease by $2000
c) Assets decrease by $2000; liabilities increase by $2000
d) Assets decrease by $2000; liabilities decrease by $2000