Suppose your $50,000 certificate of deposit matures and you transfer the funds to your checking account. This causes
A) M1 to decrease by $50,000 and M2 to increase by $50,000.
B) M1 to increase by $50,000 and M2 to remain the same.
C) both M1 and M2 to increase by $50,000.
D) no change to either M1 or M2.
B
Economics
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a. True b. False Indicate whether the statement is true or false
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The gross domestic product is not a good measure of the standard of living in a nation because it:
A. Includes the cost of health insurance B. Excludes payments for pollution control equipment C. Does not account for the size of the population D. Does not account for the cost of police protection
Economics