If Jennifer withdraws $750 from her savings account and deposits it in her chequing account,then M1+ will ________ and M2+ will ________.

Name: If Jennifer withdraws $750 from her savings account and deposits it in her chequing account,then M1+ will ________ and M2+ will ________.
Brand: Quizplus
Rating: 4.9 (49 reviews)

Question

Quizplus · Accepted Answer

M1+ includes currency in circulation and chequable deposits, so moving money from savings to chequing increases M1+. M2+ includes M1+ plus savings accounts, so the total amount in M2+ remains unchanged.

If Jennifer Withdraws $750 from Her Savings Account and Deposits