Suppose you withdraw $1,000 from your savings account and put it under your mattress. Briefly explain how this will affect M1 and M2
What will be an ideal response?
M2 will not change and M1 will rise by $1,000. When under your mattress, the $1,000 would be counted as currency. Going from a savings account to currency would raise M1, but both are part of M2, so M2 would not change.
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In economics, the term "free market" refers to a market where products are traded but not sold
Indicate whether the statement is true or false
Industrial growth and location changed while manufacturing employment rose in the Sun Belt and fell in the Frost Belt
This growth and relocation were primarily due to the relocation of plants, functions and people moving from the Frost Belt to the Sun Belt. Indicate whether the statement is true or false
If the U.S. trade deficit was reduced in a rush, what would be a possible result?
a. decreasing inflation and increasing unemployment b. increasing inflation and decreasing unemployment c increasing inflation and increasing unemployment d. decreasing inflation and decreasing unemployment
Explain how stock options can ensure compatibility between the interest of stockholders and managers.
What will be an ideal response?