Other things being equal, if you took money out of your savings ...

[stevenposner]

Other things being equal, if you took money out of your savings deposit account and put it in a demand deposit account:
 a. M1 would increase and M2 would increase.
  b. M1 would increase but M2 would not change.
  c. M1 would decrease and M2 would decrease.
  d. M1 would fall but M2 would not change.

Question 2

If the Fed aims to achieve a level of unemployment below its natural rate, it must follow time-inconsistent policies.
 a. True
  b. False
  Indicate whether the statement is true or false

[macybarnes]

Answer to Question 1

b

Answer to Question 2

True

[stevenposner]

Excellent

[cici]

Thanks for the timely response, appreciate it