Typically, when someone borrows money from a bank, M2 ________, ...

[Evvie72]

Typically, when someone borrows money from a bank, M2 ________, because ________.
 
  A) increases; the money is held for a while in a liquid form
  B) decreases; the money is held for a while in a liquid form
  C) does not change; the loan affects only the subcategories within M2
  D) decreases; of the decline in the bank's vault cash
  E) none of the above

Question 2

Milton Friedman and Edmund Phelps contributed which insight(s) to Phillips curve analysis?
 
  A) that inflation is directly related to expectations of future inflation
  B) that inflation is negatively related to the unemployment gap
  C) that in the long run unemployment will be at the natural rate
  D) all of the above
  E) none of the above

[kmb352]

Answer to Question 1

A

Answer to Question 2

D

[Evvie72]

YES! Correct, THANKS for helping me on my review

[sailorcrescent]

Excellent