Table 9-2

-Refer to Table 9-2. In Year 1, if savings deposits had been $200 billion instead of $150 billion, M1 would have been
A) unaffected.
B) larger by $50 billion.
C) smaller by $50 billion.
D) $100 billion.

Question

Table 9-2
 
-Refer to Table 9-2. In Year 1, if savings deposits had been $200 billion instead of $150 billion, M1 would have been
A) unaffected. 
B) larger by $50 billion. 
C) smaller by $50 billion. 
D) $100 billion.

Quizplus · Accepted Answer

Savings deposits are not included in the M1 money supply, so a change in savings deposits would not affect M1.

Table 9-2 -Refer to Table 9-2. in Year 1, If Savings Deposits