If households and firms decide to hold less of their money in ...

[Bernana]

If households and firms decide to hold less of their money in checking account deposits and more in currency, then initially, the money supply
 
  A) will decrease. B) will not change.
  C) will increase. D) may increase or decrease.

Question 2

Refer to Figure 13-2. Ceteris paribus, a decrease in the capital stock would be represented by a movement from
 
  A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.

[xoxo123]

Answer to Question 1

B

Answer to Question 2

B