A new financial innovation results in people switching their funds from checking deposits to savings accounts. The quantity of M1 ________ and the quantity of M2 ________

Refer to the table above. Country A has an absolute advantage in

A) beer. B) wine. C) both beer and wine. D) neither beer nor wine.

Tobin's model of the speculative demand for money shows that people can reduce their ________ by ________ their asset holdings

A) wealth; diversifying B) risk; specializing C) return; diversifying D) risk; diversifying