Multiple Choice
John and Jane decide to go on a vacation. As a result, they withdraw $2,500 from their savings account. As a result of this transfer by itself
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 decreases by $2,500 and M2 stays the same.
D) M1 decreases by $2,500 and M2 decreases by $2,500.
Correct Answer:

Verified
Correct Answer:
Verified
Q4: If the reserve ratio is 12.5 percent,then
Q16: Suppose banks decide to hold more excess
Q33: The president of each regional Federal Reserve
Q56: The interest rate the Fed charges on
Q105: If the federal funds rate were below
Q116: When the Federal Reserve conducts open-market operations
Q125: The money supply of Granov is $10,000
Q141: If the reserve ratio is 20 percent,
Q385: Table 16-3. <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4800/.jpg" alt="Table 16-3.
Q394: Which of the following is a liability