T/f the amount that savings or an investment grows is called the principal.

the answer is true well it is on apex anyway  i hope its right

The new money supply is $1,500

Explanation:

Before we proceed to answer the question according to the scenario painted, we need to make some preliminary calculations as follows;

If the monetary base deposit is $1000 and people hold 1/3 of their money, this means that the;

Reverse deposit ratio = 1/3

Currency deposit ratio = (cash in cash)/cash in deposit = (1/3)/(2/3) = 0.5

Thus mathematically,

money supply =  (currency deposit ratio + 1)/(Reserve deposit ratio + Currency deposit ratio)  × Monetary Base

Money Supply = (1+1)/(1+1/3) *  1000 = $1,500