Macroeconomics
13th Edition
ISBN: 9781337617390
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.
Expert Solution & Answer
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Students have asked these similar questions
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?
What does m1,m2 m3 include in detail ??
Chapter 12 Solutions
Macroeconomics
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
- Define M1 and M2. Which is bigger? Iarrow_forwardIf 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_forward
- John Antonio transfers $5000 from his checking account to his savings account. How are M1 and M2 affected by this decision? a.M1 increases and M2 decreases b.M1 and M2 remain the same c.M1 decreases and M1 increases d.M1 increases and M2 increases e.M1 decreases and M2 decreasesarrow_forwardFor each of the following transactions, what is the initial effect (increase, decrease or unchanged) on M1? On M2? a. An investor sells a few shares of stock and put the proceeds into his/her checking account at CIBC. b. A business deposits $100 from its cash registration into its checking account. c. You sell a few shares of stock and put the proceeds into your saving account at TD. d. A business transfers money from its checking account to its saving account in a chartered bank.arrow_forwardFind the money value of M2 if the M1 is given as 3220 and the savings deposit with post office saving banks are 2000arrow_forward
- 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_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_forwardCalculate the value of M2 if M1 is $140,000 and the value of savings with post office saving bank is $8000 millionarrow_forward
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