This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose you transfer 2,000 from your mutual fund account to your checking account. What is the ... (Read 221 times)

Pea0909berry

  • Hero Member
  • *****
  • Posts: 573
on: Jun 29, 2018
Suppose you transfer 2,000 from your mutual fund account to your checking account. What is the immediate impact of this transfer on M1 and M2?
 
  What will be an ideal response?

Question 2

Suppose a positive technological change in the production of disease-resistant corn caused the price of corn to fall. Holding everything else constant, how would this affect the market for wheat (a substitute for corn)?
 
  A) The demand for wheat would decrease and the equilibrium price of wheat would decrease.
  B) The demand for wheat would increase because consumers could afford to buy more wheat and corn.
  C) The demand for wheat would decrease and the equilibrium price of wheat would increase.
  D) The supply of wheat would increase and the equilibrium price of wheat would decrease.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

diesoon

  • Sr. Member
  • ****
  • Posts: 353
Reply #1 on: Jun 29, 2018
Answer to Question 1

Mutual fund balances are part of M2, but are not part of M1. Checking account balances are included in both money supply measures. Thus M1 will increase by 2,000 with the increase in checking account balances. M2 will not change, as the 2,000 increase in checking account balances is offset by the 2,000 decrease in mutual fund accounts.

Answer to Question 2

A


Pea0909berry

  • Member
  • Posts: 573
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

jamesnevil303

  • Member
  • Posts: 337
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

Medication errors are three times higher among children and infants than with adults.

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

Did you know?

In most climates, 8 to 10 glasses of water per day is recommended for adults. The best indicator for adequate fluid intake is frequent, clear urination.

Gene Transfer by Plasmids Gene Transfer by Plasmids
transfer RNA transfer RNA
Transfer RNA. Transfer RNA.
Energy Transfer Processes: Forced Convection Energy Transfer Processes: Forced Convection
Buildings account for 15% of greenhouse gas emissions Buildings account for 15% of greenhouse gas emissions
Suppose that we have a sample space with five equally likely experimental outcomes: E1, E2, E3, ... Suppose that we have a sample space with five equally likely experimental outcomes: E1, E2, E3, ...
Video: Mendel's Pea Experiment

For a complete list of videos, visit our video library