Suppose you transfer $1,000 from your checking account to your savings account. How does this action affect the M1 and M2 money supplies?
a. M1 and M2 are both unchanged.
b. M1 falls by $1,000 . and M2 rises by $1,000.
c. M1 is unchanged, and M2 rises by $1,000.
d. M1 falls by $1,000 . and M2 is unchanged.
D
Economics
You might also like to view...
The pitfalls of a strict money supply rule can be avoided if the Fed:
A. targets velocity growth. B. targets nominal GDP growth. C. targets money supply growth. D. targets real GDP growth.
Economics
Assume a firm is currently producing 800 units of output, P = $10, MC = $10, ATC = $8, and AVC = $6. In this case, the firm is maximizing its profit, which equals $1,600
Indicate whether the statement is true or false
Economics