Michelle transfers $4,000 from her savings account to her checking account. What effect is this change likely to have on M1 and M2?
A. M2 increases and M1 stays the same.
B. M1 decreases and M2 increases.
C. M1 increases and M2 stays the same.
D. M1 increases and M2 decreases.
Answer: C
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Monetarist economists might conclude that the accelerator hypothesis supports their position via fiscal policy since
A) the gap between the desired capital stock and the existing capital stocks is closed slowly. B) a change in expected sales will not increase output. C) V? will be smaller than expected. D) All of the above are correct.
An example of odious debt would be debts on the part of a nation that were incurred by a dictator for the well-being of his family
Indicate whether the statement is true or false
Money is
a. only assets such as gold and silver b. only fiat in nature c. anything that is generally accepted as a means of payment d. acceptable as a means of payment because the government guarantees that it must be e. only those things backed by gold
All of the following are examples of fringe benefits except
a. health insurance. b. retirement payments. c. overtime payments. d. education subsidies.