24) If households in the economy decide to take money out of savings accounts and put...
24) If households in the economy decide to take money out of savings accounts and put this money into checking accounts this will A) not change M1 and not change M2. B) decrease M1 and not change M2. C) increase M1 and decrease M2. D) increase M1 and increase M2. E) None of the above is correct
Homework Answers
Answer e. None of the above is correct
Reason- fall in savings account and rise in checking accounts.
M2 falls, no change in M1.
As M1 and M2 both contains checking deposits.
M2 has savings account.
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24) If households in the economy decide to take money out of
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