Fred Jones withdraws $1,000 in cash from his savings account. What immediate effect does this transaction have on the monetary aggregate measures of M1 and M2?(A) M1 Increases, M2 decreases(B) M1 Increases, M2 no change(C) M1 Decreases, M2 no change(D) M1 no change, M2 decreases(E) M1 no change, M2 no change 32. Fred Jones withdraws $1,000 in cash from hissavings account. What immediate effect doesthis transaction have on the monetary aggregatemeasures of M1 and M2 ?M1M2(A) Increases(B) Increases(C) Decreases(D) No change(E) No changeDecreasesNo changeNo changeDecreasesNo change

The Amount that Fred withdraw is basically given to be as = $1000 cash M1 accordingly contains…

Answered: Fred Jones withdraws $1,000 in cash…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Fred Jones withdraws $1,000 in cash from his savings account. What immediate effect does this transaction have on the monetary aggregate measures of M1 and M2?
(A) M1 Increases, M2 decreases
(B) M1 Increases, M2 no change
(C) M1 Decreases, M2 no change
(D) M1 no change, M2 decreases
(E) M1 no change, M2 no change

32. Fred Jones withdraws $1,000 in cash from his
savings account. What immediate effect does
this transaction have on the monetary aggregate
measures of M1 and M2 ?
M1
M2
(A) Increases
(B) Increases
(C) Decreases
(D) No change
(E) No change
Decreases
No change
No change
Decreases
No change

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