Michelle transfers $4,000 from her savings account to her checking account. What effect is this change likely to have on M1 and M2?

A. M1 decreases and M2 increases

B. M1 increases and M2 decreases

C. M1 increases and M2 stays the same

D. M2 increases and M1 stays the same

C. M1 increases and M2 stays the same

Economics

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Explain the capture hypothesis

What will be an ideal response?

Economics

Which of the following is an example of a negative externality?

a. Planting flowers in your front yard. b. Talking loudly when others are trying to study economics. c. People donating money to charity. d. The price of bread increases. e. Accidentally pushing someone as you try to cross the street.

Economics