Suppose individuals decide to reduce their holdings of money market funds. Further assume that these decisions put funds into checkable deposits. Given this information, we know that
A) the demand for M1 would increase and the demand for M2 would decrease.
B) the demand for M1 would decrease and the demand for M2 would decrease.
C) the demand for M1 would increase and the demand for M2 would increase.
D) the demand for M1 would decrease and the demand for M2 would increase.
E) none of the above
A
Economics
You might also like to view...
In an efficient market with rational expectations, the actual price of an asset
A) will equal its expected price. B) will often be below its expected price. C) will often be above its expected price. D) equals its expected price plus a random error term.
Economics
In the labor force, we include
A) hospitalized people. B) unemployed people. C) students, D) people on social security.
Economics