This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose you transfer 2,000 from your mutual fund account to your checking account. What is the ... (Read 232 times)

Pea0909berry

  • Hero Member
  • *****
  • Posts: 573
on: Jun 29, 2018
Suppose you transfer 2,000 from your mutual fund account to your checking account. What is the immediate impact of this transfer on M1 and M2?
 
  What will be an ideal response?

Question 2

Suppose a positive technological change in the production of disease-resistant corn caused the price of corn to fall. Holding everything else constant, how would this affect the market for wheat (a substitute for corn)?
 
  A) The demand for wheat would decrease and the equilibrium price of wheat would decrease.
  B) The demand for wheat would increase because consumers could afford to buy more wheat and corn.
  C) The demand for wheat would decrease and the equilibrium price of wheat would increase.
  D) The supply of wheat would increase and the equilibrium price of wheat would decrease.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

diesoon

  • Sr. Member
  • ****
  • Posts: 353
Reply #1 on: Jun 29, 2018
Answer to Question 1

Mutual fund balances are part of M2, but are not part of M1. Checking account balances are included in both money supply measures. Thus M1 will increase by 2,000 with the increase in checking account balances. M2 will not change, as the 2,000 increase in checking account balances is offset by the 2,000 decrease in mutual fund accounts.

Answer to Question 2

A


Pea0909berry

  • Member
  • Posts: 573
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

mammy1697

  • Member
  • Posts: 341
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Bacteria have flourished on the earth for over three billion years. They were the first life forms on the planet.

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Did you know?

The liver is the only organ that has the ability to regenerate itself after certain types of damage. As much as 25% of the liver can be removed, and it will still regenerate back to its original shape and size. However, the liver cannot regenerate after severe damage caused by alcohol.

Did you know?

Every flu season is different, and even healthy people can get extremely sick from the flu, as well as spread it to others. The flu season can begin as early as October and last as late as May. Every person over six months of age should get an annual flu vaccine. The vaccine cannot cause you to get influenza, but in some seasons, may not be completely able to prevent you from acquiring influenza due to changes in causative viruses. The viruses in the flu shot are killed—there is no way they can give you the flu. Minor side effects include soreness, redness, or swelling where the shot was given. It is possible to develop a slight fever, and body aches, but these are simply signs that the body is responding to the vaccine and making itself ready to fight off the influenza virus should you come in contact with it.

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

Mechanisms of lipid transfer throughout a eukaryotic cell Mechanisms of lipid transfer throughout a eukaryotic cell
TEM of placental transfer tissue in the liverwort genus Monoclea. TEM of placental transfer tissue in the liverwort genus Monoclea.
Browning and Gunning demonstrated that placental transfer tissues increase plant reproductive succes Browning and Gunning demonstrated that placental transfer tissues increase plant reproductive succes
The F integration site determines the order of gene transfer in Hfrs The F integration site determines the order of gene transfer in Hfrs
Wind, solar, biomass, and geothermal power account for less than 1% of global power generation Wind, solar, biomass, and geothermal power account for less than 1% of global power generation
A highway curve of radius 80 m is banked at 45°. Suppose that an ice storm hits, and the ... A highway curve of radius 80 m is banked at 45°. Suppose that an ice storm hits, and the ...
Video: Fertilization and Development

For a complete list of videos, visit our video library