Assuming no other changes, if balances in money market deposit accounts increase by $50 billion and small- denominated time deposits decrease by $50 billion, the
A) M1 and M2 money supplies will not change.
B) M2 money supply will increase.
C) M1 money supply will decline.
D) M2 money supply will increase and the M1 money supply will decrease.
Correct Answer:
Verified
Q34: The difference between M1 and M2 is
Q35: Near monies
A) include all financial and real
Q36: Coins in people's pockets and purses are
A)
Q37: The near-money components of M2 are
A) equally
Q38: The M2 money supply includes
A) stock certificates.
B)
Q40: Checkable deposits include
A) both large- and small-denominated
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