Describe the circumstances under which the M1 money supply could fall while the M2 money supply remains constant at the same time
In order for the M1 money supply to fall, one of the components of M1 (checkable deposits, currency held outside banks, or traveler's checks) would have to decline. M2 would remain constant as long as the money that was deducted from M1 was deposited into one of the additional components of M2 (savings deposits, small-denomination time deposits, or retail money market mutual funds).
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From 1975 to 2008, which of the following countries experienced greater wage increases than the U.S.?
a. Japan b. South Korea c. Taiwan d. all of the above
Answer the following questions true (T) or false (F)
1. Quantity supplied refers to the amount of a good or service that a firm is willing and able to supply at a given price. 2. A positive technological change will cause the supply of a good to increase. 3. An decrease in quantity supplied is represented by a leftward shift of the supply curve.