Suppose you transfer $1000 from your cheque account to your savings account. How does this action affect the M1 and M3 money supplies?
A) M1 and M3 are both unchanged.
B) M1 falls by $1000 and M3 rises by $1000.
C) M1 is unchanged and M3 rises by $1000.
D) M1 falls by $1000 and M3 is unchanged.

Question

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The Answer of Suppose you transfer $1000 from your cheque account to your savings account. How does this action affect the M1 and M3 money supplies?
A) M1 and M3 are both unchanged.
B) M1 falls by $1000 and M3 rises by $1000.
C) M1 is unchanged and M3 rises by $1000.
D) M1 falls by $1000 and M3 is unchanged.

Suppose You Transfer $1000 from Your Cheque Account to Your