Suppose Stan transfers $1,000 from his checking account into a savings account. What are the effects on M1 and M2 money supply?
A) M1 increases; M2 decreases.
B) M1 decreases; M2 remains the same.
C) Both M1 and M2 increase.
D) Both M1 and M2 decrease.
E) Both M1 and M2 remain the same.
B
You might also like to view...
In the above figure, suppose the government subsidizes the production of milk so that milk production increases to 8 million gallons per day
What is the size of the deadweight loss? (Hint: It is equal to the triangular area of negative consumer and producer surplus that results when output exceeds the efficient level.) A) $12.5 million B) $6.25 million C) $4.50 million D) $2.25 million
If average labor productivity decreases, then the same number of employed workers will always produce:
A. more total output. B. less output per person. C. less total output. D. more output per person.
If the price of a 32 GB memory card decreases from $25 to $20, the percentage change using the average value (or the midpoint) is:
A. -22.2%. B. -20%. C. -25%. D. -5%.
The break-even level out output occurs for a business when
A) Marginal cost equals marginal revenue. B) Average revenue equals marginal revenue. C) Marginal revenue equals average total cost. D) Average revenue equals average variable cost.