Suppose Stan transfers $1,000 from his savings account into his checking account. What are the effects on M1 and M2 money supply?
A) M1 increases; M2 remains the same.
B) M1 decreases; M2 increases.
C) Both M1 and M2 increase.
D) Both M1 and M2 decrease.
E) Both M1 and M2 remain the same.
A
Economics
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Suppose the desired reserve ratio is 10 percent. If the Commerce Bank has total deposits of $20,000, total assets of $10,000, and actual reserves of $8000, the amount of excess reserves is
A) $100. B) $6,000. C) $2,000. D) $0. E) $800.
Economics
Structural unemployment is
A) associated with the changing of jobs in a dynamic economy. B) associated with general downturns in the economy. C) associated with changes in technology that change required job skills. D) very short-term unemployment.
Economics