If an individual moves money from a saving account to a checking account deposit, then the value of M1 _____, and the value of M2:

Question

Quizplus · Accepted Answer

Moving money from a savings account to a checking account increases M1 because M1 includes checking deposits but not savings accounts. M2 includes both checking and savings deposits, so the total value of M2 does not change with such a transfer.

If an Individual Moves Money from a Saving Account to a Checking