If a person withdraws $500 from his/her chequing account and holds it as currency, then M1+ will ________ and M1++ will ________.

Name: If a person withdraws $500 from his/her chequing account and holds it as currency, then M1+ will ________ and M1++ will ________.
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Question

Quizplus · Accepted Answer

M1+ and M1++ are measures of the money supply. Withdrawing cash from a chequing account does not change the total amount of money in circulation, so both M1+ and M1++ remain unchanged.

If a Person Withdraws $500 from His/her Chequing Account and Holds