question archive Suppose Tabatha takes $500 from her savings account and deposits it in her checking account
Suppose Tabatha takes $500 from her savings account and deposits it in her checking account
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Suppose Tabatha takes $500 from her savings account and deposits it in her checking account. What is the change in M1 and M2?
| a. | M1 and M2 both remain unchanged | |
| b. | M1 and M2 both increase | |
| c. | M1 increases and M2 remains unchanged | |
| d. | M1 increases and M2 decreases | |
| e. | M2 increases and M1 remains unchanged |
Option 1
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