When individuals shift funds from money market mutual funds to no-load stock and bond mutual funds,
a. the growth rate of M1 will decline but the growth of M2 will be unaffected.
b. the growth rate of M2 will decline but the growth of M1 will be unaffected.
c. the growth rate of both M1 and M2 will decline.
d. the growth rate of both M1 and M2 will increase.
B
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Events of the 1970s and early 1980s showed that
A) the Phillips curve presents policymakers with a stable menu of choices. B) cycles of unemployment and inflation rates appear to have gravitated around a 6 percent unemployment rate. C) lower inflation rates are consistently accompanied by higher unemployment rates. D) a tradeoff between inflation and unemployment may not always exist. E) a and c
The value of the next best alternative defines ___________________.
Fill in the blank(s) with the appropriate word(s).