If households in the economy decide to take money out of checking account deposits and put this money into savings accounts, this will initially
A) decrease M1 and increase M2.
B) decrease M1 and decrease M2.
C) decrease M1 and not change M2.
D) increase M1 and decrease M2.
Answer: C
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What will be an ideal response?
Which of the following is likely more important for explaining the slope of the aggregate-demand curve of a small economy than it is for the United States?
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High unemployment and high rates of inflation are examples of coordination successes.
Answer the following statement true (T) or false (F)