If a person takes $100 from his/her piggy bank at home and puts it in his/her savings account, then M1 will ________ and M2 will ________
A) not change; increase
B) decrease; not change
C) decrease; increase
D) increase; increase
E) increase; decrease
B
You might also like to view...
If the dollar rises in value compared to other currencies, what will happen in the United States?
A. An increase in aggregate demand B. An increase in aggregate supply C. A decrease in aggregate supply D. An increase in the U.S. price level
The markup pricing technique involves determining the selling price of a good by adding a profit markup to minimum average cost. This would result in maximum profits only if
a. average cost were constant. b. the markup were zero. c. the markup varied with the elasticity of demand. d. demand were inelastic.
Price controls are usually enacted when policymakers believe that the market price of a good or service is unfair to buyers or sellers
a. True b. False Indicate whether the statement is true or false
Which of the following is included in the demand for dollars in the market for foreign-currency exchange in the open-economy macroeconomic model?
a. a company in Canada wants to buy oranges from the U.S b. a Japanese banks want to buy bonds from the U.S. government c. a U.S. citizen wants to buy stock a German company is selling d. None of the above is correct.