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Author Question: A decrease in currency in circulation combined with an equal increase in savings account deposits ... (Read 26 times)

frankwu

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  • Posts: 549
on: Jun 30, 2018
A decrease in currency in circulation combined with an equal increase in savings account deposits would:
 a. increase both M1 and M2.
 b. increase M1 but have no effect on M2.
  c. decrease both M1 and M2.
 d. decrease M1 but have no effect on M2.

Question 2

The sale of U.S. currency and purchase of foreign currency by the Federal Reserve would shift the demand curve for U.S. dollars to the left.
 a. True
  b. False
  Indicate whether the statement is true or false


mohan

  • Sr. Member
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  • Posts: 362
Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

False


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