A new financial innovation results in people switching their ...

[yoooooman]

A new financial innovation results in people switching their funds from checking deposits to savings accounts. The quantity of M1 ________ and the quantity of M2 ________.
 
  A) decreases; decreases
  B) increases; decreases
  C) decreases; does not change
  D) decreases; increases

Question 2

All of the following are sources of loanable funds EXCEPT
 
  A) business investment.
  B) private saving.
  C) government budget surplus.
  D) international borrowing.

[scottmt]

Answer to Question 1

C

Answer to Question 2

A

[yoooooman]

TYSM

[scikid]

Excellent