carl decides to keep his money under his mattress instead of putting it in the bank. if everyone made the same decision as carl, what might the impact be on the national economy?

it would not affect the national economy greatly because individuals do not save much money.
it would help grow the national economy because the economy usually benefits when money is taken out of circulation.
it would hurt economic growth because banks often lend money to borrowers who then put that money back into circulation.
it would help economic growth by spurring the sale of mattresses.

The impact to be on the national economy has, it would hurt economic growth because banks often lend money to borrowers who then put that money back into circulation. Thus, option (c) is correct.

What is economy?

The mechanism through which a nation or region organizes its money, industry, and trade is concerned to as its “economy.”

It would be detrimental to economic growth if Carl decided to keep his money out of the bank and instead store it beneath his mattress because banks frequently lend money to borrowers who then reinvest it in the economy.

As a result, option (c) is correct.

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