EBK ECONOMICS
13th Edition
ISBN: 8220106798607
Author: Arnold
Publisher: CENGAGE L
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Chapter 12, Problem 10QP
To determine
Identify the changes on M1 and M2.
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If you are out shopping for clothes and books, what is easiest and most convenient for you to spend: M1 or M2? Explain your answer.
why does m2 fall and not remain unchanged? doesn't M2 consist of both M1 and M2? so when M1 rise (due to more cash), savings account (which is under M2) will drop by the same amount as M1 rise, hence overall M2 will remain unchanged?
You sell $10,000 of money market mutual fund shares and deposit them in a checking account with a bank. What is the effect on M1 and M2?
Chapter 12 Solutions
EBK ECONOMICS
Ch. 12.2 - Prob. 1STCh. 12.2 - Prob. 2STCh. 12.2 - Prob. 3STCh. 12.3 - Prob. 1STCh. 12.3 - Prob. 2STCh. 12.3 - Prob. 3STCh. 12.4 - Prob. 1STCh. 12.4 - Prob. 2STCh. 12.4 - Prob. 3STCh. 12 - How much money did you make last year? What is...
Ch. 12 - Prob. 2QPCh. 12 - Prob. 3QPCh. 12 - Prob. 4QPCh. 12 - Prob. 5QPCh. 12 - Prob. 6QPCh. 12 - Prob. 7QPCh. 12 - Prob. 8QPCh. 12 - Prob. 9QPCh. 12 - Prob. 10QPCh. 12 - Prob. 11QPCh. 12 - Prob. 12QPCh. 12 - Prob. 13QPCh. 12 - Prob. 14QPCh. 12 - Prob. 15QPCh. 12 - Prob. 16QPCh. 12 - Prob. 17QPCh. 12 - Prob. 1WNGCh. 12 - Prob. 2WNGCh. 12 - Prob. 3WNGCh. 12 - Prob. 4WNGCh. 12 - Prob. 5WNGCh. 12 - Prob. 6WNGCh. 12 - Prob. 7WNGCh. 12 - Prob. 8WNGCh. 12 - Prob. 9WNGCh. 12 - Prob. 10WNG
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Similar questions
- If traveler’s checks were $500 higher and saving deposits were $1,000 higher, M1 would be?arrow_forwardDetermine whether each of the following is included in both M1 and M2 or M2 only: a. a Connecticut quarter b. a savings account at a local savings bank c. a share draft account at a credit union d. money market deposit accounts e. American Express travelers’ checksarrow_forwardI need it in 20 mins. Please hurryarrow_forward
- Find the money value of M2 if the M1 is given as 3220 and the savings deposit with post office saving banks are 2000arrow_forwardWhich of the following is included in M2, but not included in M1? Group of answer choices travelers checks demand deposits currency held outside banks savings accountsarrow_forwardGive three specific examples each of M1, M2, and M3. For instance, under M1 is coins and currency in circulation and one specific example of currency is American dollar.arrow_forward
- Calculate the value of M2 if M1 is $140,000 and the value of savings with post office saving bank is $8000 millionarrow_forwardJohn withdraws $ 100 from his checking account and deposits it in his savings account. What will be the effect of this Transaction on different measures of money, i.e. C, M1, and M2?arrow_forwardAccording to table below (all figures are in billions of dollars)Currency held outside banks $ 800Demand Deposits 1000Traveler's Checks 100Other checkable deposits 200Savings accounts 300Money market accounts 100Other near monies 200a) What is the value of M1?b) What is the value of M2 ?arrow_forward
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