Other things being equal, if you took money out of your demand deposit account and put it in a savings deposit account:
a. M1 would increase and M2 would increase.
b. M1 would increase but M2 would not change.
c. M1 would decrease and M2 would decrease.
d. M1 would fall but M2 would not change.
d
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A firm has an incentive to decrease supply now and increase supply in the future if it expects that
A) the price of its product will be lower in the future than it is today. B) more firms will enter the market in the future. C) the price of its product will be higher in the future than it is today. D) the prices of inputs used to produce the product will rise in the future.
With respect to events like global warming some economists suggest using falling discount rates because
A) exponential discounting virtually gives no weight to (large) costs incurred far into the future. B) exponential discounting weights (large) costs incurred far into the future heavily. C) events far in the future do not affect us. D) we should not care about costs far in the future.