Suppose Megan withdraws $75 from her savings account and deposits it into her checking account. This transaction causes M1 to

A. Decrease by $75 and M2 to remain the same.
B. Remain the same and M2 to increase by $75.
C. Increase by $75 and M2 to remain the same.
D. Increase by $75 and M2 to decrease by $75.

Answer: C

Economics

You might also like to view...

The above figure shows a nation's production function. Point B is ________ and ________ because ________

A) unattainable; inefficient; the nation is using resources efficiently but they could be more efficient B) unattainable; inefficient; the nation is using resources inefficiently C) attainable; inefficient; the nation is using resources inefficiently D) unattainable; efficient; the nation would be using resources efficiently if they could attain this level of production E) attainable; efficient; the nation is using resources efficiently

Economics

Economists first began studying the relationship between changes in aggregate expenditures and changes in GDP

A) at the end of the Civil War. B) during the Great Depression. C) during the Industrial Revolution. D) in the 1950s.

Economics