When Maria deposits 100 in currency in her checkable deposit at ...

[chandani]

When Maria deposits 100 in currency in her checkable deposit at Bank of America, the immediate effect is that the quantity of M1 ________ because ________.
 
  A) changes only if Bank of America has excess reserves; if the bank does not have excess reserves, the overall effect to M1 is too small to notice
  B) decreases; checkable deposits are included in M2 but are not included in M1
  C) does not change; both currency and checkable deposits are included in M1
  D) changes, but the direction of the change cannot be determined; the direction of the change depends on what Bank of America does with the deposit
  E) increases; both currency and checkable deposits are included in M1

Question 2

If real GDP increases by 6 percent and at the same time the population increases by 2 percent, then real GDP per person grows by
 
  A) 3 percent. B) 6 percent. C) 8 percent. D) 4 percent. E) 2 percent.

[dudman123]

Answer to Question 1

C

Answer to Question 2

D

[chandani]

Excellent

[sultansheikh]

Gracias!