For each of the following transactions, what is the initial effect (increase, decrease or unchanged) on M1? On M2? a. An investor sells a few shares of stock and put the proceeds into his/her checking account at CIBC. b. A business deposits $100 from its cash registration into its checking account. c. You sell a few shares of stock and put the proceeds into your saving account at TD. d. A business transfers money from its checking account to its saving account in a chartered bank.
For each of the following transactions, what is the initial effect (increase, decrease or unchanged) on M1? On M2? a. An investor sells a few shares of stock and put the proceeds into his/her checking account at CIBC. b. A business deposits $100 from its cash registration into its checking account. c. You sell a few shares of stock and put the proceeds into your saving account at TD. d. A business transfers money from its checking account to its saving account in a chartered bank.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![For each of the following transactions, what is the initial effect (increase,
decrease or unchanged) on M1? On M2?
a. An investor sells a few shares of stock and put the proceeds into his/her
checking account at CIBC.
b. A business deposits $100 from its cash registration into its checking
асcount.
c. You sell a few shares of stock and put the proceeds into your saving
account at TD.
d. A business transfers money from its checking account to its saving
account in a chartered bank.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F13065edc-3994-4446-889a-ee6ba2d5da48%2Fa54e0356-a78e-4f03-9137-936ac4640f24%2Fyqqy1jd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:For each of the following transactions, what is the initial effect (increase,
decrease or unchanged) on M1? On M2?
a. An investor sells a few shares of stock and put the proceeds into his/her
checking account at CIBC.
b. A business deposits $100 from its cash registration into its checking
асcount.
c. You sell a few shares of stock and put the proceeds into your saving
account at TD.
d. A business transfers money from its checking account to its saving
account in a chartered bank.
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