Suppose Jason takes $150 he had in his wallet and deposits it into his checking account. The immediate result of this transaction is that M1
A. Increases by $150 and M2 remains the same.
B. And M2 do not change.
C. Remains the same and M2 increases by $150.
D. Decreases by $150 and M2 remains the same.
Answer: B
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Throughout the period from 1996 to 2010, U.S. Real GDP growth has been
a. constant. b. declining. c. steadily increasing. d. fluctuating.
Advocates of government-run employment agencies and public training programs believe they make job search more efficient
a. True b. False Indicate whether the statement is true or false
Monetarists advocate that the
A. money supply should be increased during inflation and reduced during recession. B. money supply should be reduced during inflation and increased during recession. C. money supply should be increased by a constant rate year after year. D. counter cyclical approach to fiscal policy be adopted.
To achieve its target when the federal funds rate is above the target range, the Fed should:
A. buy foreign currency. B. follow expansionary policy. C. do nothing. D. follow contractionary policy.