Essay
What happens to M1 and M2+ due to each of the following changes?
a.You take $500 out of your chequing account and put it into a passbook savings account.
b.You take $1000 out of your chequing account and put it into a current account.
c.You take $1500 out of your money-market mutual fund and deposit into your chequing account.
d.You cash in $2000 in savings bonds and invest the money in a certificate of deposit.
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a.M1 falls $500,M2+ is unchang...View Answer
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