If Julia deposits $2, 000 dollars (which she has until now kept in her closet as cash)in her savings account, then the M1 money supply will decrease.

Question

Quizplus · Accepted Answer

M1 money supply includes cash, demand deposits, and traveler's checks. By depositing the $2,000 cash into her savings account, the amount of cash in circulation (which is part of M1) will decrease, leading to a decrease in M1 overall.

If Julia Deposits $2, 000 Dollars (Which She Has Until