Homework Help is Here – Start Your Trial Now!
Business
Economics
Jim has the following assets and liabilities: Credit card balance $2,000 Cash $500 Government bonds $2,000 Stock $5,000 Checking $750 Car loan balance $5,000 Car $15,000 Which of the following actions would decrease Jim's money demand by $200? Select one: A. Jim writes a check for $200 to pay down his credit card balance. B. Jim sells $200 worth of stocks and puts the proceeds in his checking account. c. Jim sells a $200 government bond and puts the proceeds in his checking account. D. Jim writes a $200 check for cash and holds the cash.

Jim has the following assets and liabilities: Credit card balance $2,000 Cash $500 Government bonds $2,000 Stock $5,000 Checking $750 Car loan balance $5,000 Car $15,000 Which of the following actions would decrease Jim's money demand by $200? Select one: A. Jim writes a check for $200 to pay down his credit card balance. B. Jim sells $200 worth of stocks and puts the proceeds in his checking account. c. Jim sells a $200 government bond and puts the proceeds in his checking account. D. Jim writes a $200 check for cash and holds the cash.

ECON MACRO
ECON MACRO
5th Edition
ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter14: Banking And The Money Supply
Section: Chapter Questions
Problem 2.3P
See similar textbooks
icon
Related questions
Question
Don't use Ai. Answer in step by step with explanation.
Jim has the following assets and liabilities: Credit card balance $2,000 Cash $500 Government bonds $2,000 Stock $5,000 Checking $750 Car loan balance $5,000 Car $15,000 Which of the following actions would decrease Jim's money demand by $200? Select one: A. Jim writes a check for $200 to pay down his credit card balance. B. Jim sells $200 worth of stocks and puts the proceeds in his checking account. c. Jim sells a $200 government bond and puts the proceeds in his checking account. D. Jim writes a $200 check for cash and holds the cash.
Transcribed Image Text:Jim has the following assets and liabilities: Credit card balance $2,000 Cash $500 Government bonds $2,000 Stock $5,000 Checking $750 Car loan balance $5,000 Car $15,000 Which of the following actions would decrease Jim's money demand by $200? Select one: A. Jim writes a check for $200 to pay down his credit card balance. B. Jim sells $200 worth of stocks and puts the proceeds in his checking account. c. Jim sells a $200 government bond and puts the proceeds in his checking account. D. Jim writes a $200 check for cash and holds the cash.
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ECON MACRO
ECON MACRO
Economics
ISBN:
9781337000529
Author:
William A. McEachern
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours…
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Exploring Economics
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Economics (MindTap Course List)
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS