Macroeconomics (Book Only)
12th Edition
ISBN: 9781285738314
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
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
Macroeconomics (Book Only)
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 - Prob. 1VQP
Ch. 12 - Prob. 2VQPCh. 12 - Prob. 3VQPCh. 12 - Prob. 4VQPCh. 12 - Prob. 5VQPCh. 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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- Which 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_forwardCalculate the value of M2 if M1 is $140,000 and the value of savings with post office saving bank is $8000 millionarrow_forwardSuppose you transfer $2,000 from your mutual fund account to your checking account. What is the immediate impact of this transfer on M1 and M2?arrow_forward
- John 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_forwardCalculate the value of M1 if M3 is $14000 million and the net time deposits with banks is $8000 millionarrow_forward
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