Multiple Choice
Which of these would increase M1 in the country where Joe, Nan, and the Hardware Store are located?
A) Joe withdraws $500 from his checking account and deposits it in his savings account.
B) Joe withdraws $500 from his checking account and gives it to his sister Nan, who deposits it in her checking account.
C) Joe withdraws $500 from his savings account and deposits it in his checking account.
D) Joe spends $500 cash at the Hardware Store, and the store deposits the $500 in its checking account.
Correct Answer:

Verified
Correct Answer:
Verified
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