John transfers $1000 from his checking account to his saving. 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

John transfers $1000 from his checking account to his saving. 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 29P: If you take 100 out of your piggy bank and deposit it in your checking account, how did M1 change?...

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Question

John transfers $1000 from his checking account to his saving. 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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