Multiple Choice
John and Jane decide to go on a vacation.As a result,they withdraw $2,500 from their savings account to purchase $2,500 worth of traveler's checks.As a result of these changes,
A) M1 increases by $2,500 and M2 decreases by $2,500.
B) M1 increases by $2,500 and M2 stays the same.
C) M1 and M2 stay the same.
D) M1 decreases by $2,500 and M2 increases by $2,500.
Correct Answer:
Verified
Correct Answer:
Verified
Q8: Which of the following is included in
Q9: Credit cards<br>A)represent the largest component of M1.<br>B)are
Q10: Given the following information,what are the <img
Q11: Demand deposits are a type of<br>A)checking account.<br>B)time
Q12: Given the following information,what are the <img
Q14: Economists equate money with<br>A)individual wealth.<br>B)income regularly earned.<br>C)assets
Q15: Which of the following defer payments?<br>A)credit cards
Q16: Paper money<br>A)has a high intrinsic value.<br>B)is the
Q17: The money stock in the economy is<br>A)the
Q18: Currently,U.S.currency is<br>A)fiat money with intrinsic value.<br>B)fiat money