K Pedro takes $200 from his money market fund and deposits the $200 in his checking account. What is the immediate change in M1 and M2? A. M1 increases and M2 decreases by $200. B. M1 increases by $200 and M2 does not change. C. M1 does not change and M2 does not change. D. M1 decreases and M2 increases by $200. E. Both M1 and M2 decrease by $200
K Pedro takes $200 from his money market fund and deposits the $200 in his checking account. What is the immediate change in M1 and M2? A. M1 increases and M2 decreases by $200. B. M1 increases by $200 and M2 does not change. C. M1 does not change and M2 does not change. D. M1 decreases and M2 increases by $200. E. Both M1 and M2 decrease by $200
Chapter18: Money And The Federal Reserve System
Section: Chapter Questions
Problem 6SQP
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Question
K Pedro takes $200 from his
A. M1 increases and M2 decreases by $200.
B. M1 increases by $200 and M2 does not change.
C. M1 does not change and M2 does not change.
D. M1 decreases and M2 increases by $200.
E. Both M1 and M2 decrease by $200.
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