help economics question please?

anonymous

New member
Assuming no other changes, if balances in small time deposits increase by $30 billion and money market mutual funds held by businesses decrease by $30 billion, the:

a. M1 and M2 money supplies will not change.
b. M2 and MZM money supplies will increase.
c. M1, M2, and MZM money supplies will decline.
d. M2 money supply will increase and MZM money supply will decrease.



Assuming no other changes, if balances in money market mutual funds held by individuals increase by $50 billion and small time deposits decrease by $50 billion, the:


a. M1 and M2 money supplies will not change.
b. M2 will remain unchanged and MZM money supply will increase.
c. M1, M2, and MZM money supplies will decline.
d. M2 money supply will decrease and MZM money supply will remain unchanged
 
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