Suppose you transfer $500 from your savings deposit account to your checking deposit accou what is the overall effect on M1 and M2? Both M1 and M2 increase by $500. O M1 falls by $500, M2 is unchanged. O M1 is unchanged, M2 rises by $500. O M1 rises by $500, M2 is unchanged. Neither M1 nor M2 change
Suppose you transfer $500 from your savings deposit account to your checking deposit accou what is the overall effect on M1 and M2? Both M1 and M2 increase by $500. O M1 falls by $500, M2 is unchanged. O M1 is unchanged, M2 rises by $500. O M1 rises by $500, M2 is unchanged. Neither M1 nor M2 change
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Suppose you transfer $500 from your savings deposit account to your checking deposit accou
what is the overall effect on M1 and M2?
Both M1 and M2 increase by $500.
M1 falls by $500, M2 is unchanged.
O M1 is unchanged, M2 rises by $500.
O M1 rises by $500, M2 is unchanged.
O Neither M1 nor M2 change
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