What happens to M1 when Serena withdraws $1000 from a checking account and places it in her purse?   a.It increases by $1000 b.It increases by more than $1000 because of the money multiplier effect c.Nothing. It does not change. d.It decreases by more than $1000 because of the money multiplier effect e.It decreases by $1000

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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What happens to M1 when Serena withdraws $1000 from a checking account and places it in her purse?

 

a.It increases by $1000

b.It increases by more than $1000 because of the money multiplier effect

c.Nothing. It does not change.

d.It decreases by more than $1000 because of the money multiplier effect

e.It decreases by $1000

 

 

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