Ruby transfers $700 from her saving account to her checking account. This transaction will
A. not change M1 and decrease M2.
B. increase both M1 and M2.
C. decrease both M1 and M2.
D. increase M1 and not change M2.
Answer: D
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Which one of the following would shift the aggregate demand curve to the left?
A) an increase in the money supply B) an increase in exports C) an increase in taxes D) an increase in government spending
Why does the PPF bow outward and what does that imply about the relationship between opportunity cost and the quantity produced?
What will be an ideal response?
The supply of labor is the relationship between __________
A. the quantity of labor supplied and leisure time forgone B. the real wage rate and the quantity of labor supplied C. firms' willingness to supply jobs and the real wage rate D. the labor force participation rate and the real wage rate
If the equilibrium price of lettuce is $.80 per head and the government imposes a price floor of $.70 per head, the price of lettuce will
A. decrease to $.70. B. remain at $.80. C. decrease to $.75. D. be impossible to determine.