Ali transfers 1000 dollars from his checking account to his savings account. This transaction will a) decrease both M1 and M2. b) not change M1 and decrease M2. c) decrease M1 and not change M2. d) increase both M1 and M2.

Ali transfers 1000 dollars from his checking account to his savings account. This transaction will a) decrease both M1 and M2. b) not change M1 and decrease M2. c) decrease M1 and not change M2. d) increase both M1 and M2.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter27: Money And Banking

Section: Chapter Questions

Problem 3SCQ: If you are out shopping for clothes and books, what is easiest and most convenient for you to spend:...

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Ali transfers 1000 dollars from his checking account to his savings account. This transaction
will
a) decrease both M1 and M2.
b) not change M1 and decrease M2.
c) decrease M1 and not change M2.
d) increase both M1 and M2.

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