Other things constant, which of the following would cause the M1 money supply to decline?
A) an increase in the quantity of U.S.currency held overseas
B) a shift of funds from interest-earning checking deposits to money market mutual funds
C) a reduction in the general public's holdings of currency outside of banks because debit cards have become more popular and widely accepted
D) a shift of funds from money market mutual funds into stock and bond mutual funds because the fees to invest in the latter have declined
Correct Answer:
Verified
Q81: During the second half of 2008, the
Q88: The large increase in the excess reserves
Q103: The Fed's use of the interest rate
Q104: During the three years following the financial
Q105: The foreign holdings of U.S. dollars
A) are
Q112: Prior to 2008, the primary tool used
Q117: Which of the following was true of
Q120: During the financial crisis of 2008-2010, the
Q177: Which of the following would lead to
Q178: When using the money supply figures to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents