Author Question: If a person withdraws 500 from his/her checking account and holds it as currency, then M1 will ... (Read 79 times)

Chloeellawright · **on:** Jun 29, 2018

If a person withdraws 500 from his/her checking account and holds it as currency, then M1 will ________ and M2 will ________.

A) not change; increase
B) not change; not change
C) decrease; increase
D) increase; decrease
E) decrease: decrease

Question 2

Assume weak growth in aggregate demand keeps the economy below potential GDP, so unemployment rises but inflation falls. This explains the ________ slope of the short-run Phillips curve.

A) infinite B) positive C) negative D) zero