If an individual moves money from a small-denomination time deposit to a demand deposit account
A) M1 increases and M2 stays the same.
B) M1 stays the same and M2 increases.
C) M1 stays the same and M2 stays the same.
D) M1 increases and M2 decreases.
A
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An increase in the price of a complement shifts the demand curve to the
a. right b. left c. it does not change the demand curve d. none of the above
If you overhear a group of people talking about their plans to save for their retirement and one of them says that it causes them to save less and the other says they will save more, you would conclude
A. that both are rational, they just have different perspectives. B. the person decreasing saving is rational and the other is irrational. C. the person increasing saving is rational and the other is irrational. D. neither are rational, Social Security affects no one's saving.