State the immediate effect of each of the following actions on M 1 and M 2 :

Question:

State the immediate effect of each of the following actions on M₁ and M₂:

a. Barry writes his plumber a check for $200. The plumber takes the check to the bank, keeps $50 in cash, and deposits the remainder in his savings account.

b. Maureen deposits the $1,000 from her CD in a money market mutual fund.

c. Sylvia withdraws $50 in cash from her savings account.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Macroeconomics

ISBN: 978-1259663048

10th edition

Authors: David C. Colander

See More Books

Question Posted: Dec 05, 2018 06:30 AM

See More Questions

The Lux Company experiences the following unrelated events and transactions during Year 1. The company's existing current ratio is 2:1 and its quick ratio is 1.2:1. 1. Lux wrote off $5,000 of...
Suppose you withdraw $1,000 from your checking account and use the funds to buy a certificate of deposit at your bank. What is the immediate effect of these actions on M1 and M2?
The following misstatements are included in the accounting records of Lathen Manufacturing Company: 1. Joe Block and Frank Demery take turns punching in for each other every few days. The absent...
Matheny Inc. went public 3 years ago. The board of directors will be meeting shortly after the end of the year to decide on a dividend policy. In the past, growth has been financed primarily through...
A developmental psychologist placed children in a social situation in which they were either rewarded or punished (Factor A: consequence) by a parent, sibling, or stranger (Factor B: type of adult)....
The prices of our consulting services are determined by whatever our competitors charge for similar services. Costs are irrelevant. Do you agree with this statement? Explain your answer.
The Hull White model is \[d X_{t}=a(t)\left(b(t)-X_{t} ight) d t+\sigma(t) d W_{t}\] In this problem take $a(t)=\theta_{1} t, b(t)=\theta_{2} \sqrt{t}$ and $\sigma(t)=\theta_{3} t$ where...
After all revenue and expense account have been closed at the end of the fiscal year, Income Summary has a debit of $315,000 and a credit of $449.500. At the same date, Retained Earnings has a credit...
Given the following probability distribution for Foster Trucking Company Possible outcome for damages Probability Calculate the expected value. $0 0.4 $400 0.3 $1,000 0.2 $5,000 0.1
The store manager in a Department Store feels that her inventory levels of kitchen chimneys have been running higher than necessary. She feels the inventory policy needs to be reframed. Before that,...
Explain in words why the present value of $100 to be received in 10 years would decline as the interest rate rises.
Categorize the following as components of M 1 , M 2 , both, or neither. a. State and local government bonds. b. Checking accounts. c. Money market accounts. d. Currency. e. Stocks. f. Corporate bonds.
A 100-ft 3 /s water jet is moving in the positive x-direction at 18 ft/s. The stream hits a stationary splitter, such that half of the flow is diverted upward at 45? and the other half is directed...
You quit your job where you earned a year to start your own widget business. To start your business, you cashed in your investments of which earned you a year in interest. In the first year, you sold...
A company provides the following information for the year 2018: Description Amount Description Mortgage payable Amount Cash $9,950 $17,500 (due 2021) Accounts payable $32,510 Unearned revenue $950...
Briefly list some points to note that can help when planning a wine list: 1) The list should have a logic that is easily understood by the client 2) Wines should be selected that are consistent in...
Following data is given for XYZ company: Sales $114,000 Operating income $39,900 Total assets $71,250 Return on investment for XYZ company is:
what ways does Conceptual art challenge the viewer to actively participate in the creation of meaning, requiring them to intellectually engage with the conceptual underpinnings of the artwork rather...
How can consumers be categorized in terms of their timing of adoption relative to other consumers?
What are the three kinds of research types? Explain each type.
The owner of an optometry practice, in a city with more than a hundred other such practices, has the following demand and cost schedules for eye exams: a. Fill in the columns for total revenue,...
Tino owns a taco stand in Houston, Texas, where there are dozens of other taco stands. He faces the following demand and cost schedules for his taco plates (two tacos and a side of refried beans): a....
Assume that the plastics business is monopolistically competitive. a. Draw a graph showing the long-run equilibrium situation for a typical firm in the industry. Clearly label the demand, MR, MC, and...
The Fellsway Bank is considering placing ATM machines in the town centers of some of the following six communities: Arlington, Belmont, Cambridge, Winchester, Stoneham, and Melrose. The bank would...
Stephens, Inc currently pays a $3 per share dividend, but is considering eliminating the dividend and using the savings to repurchase shares. Investments of similar risk to Stephens provide an...
Michael arrived at work at 9 a.m. Monday and left at 5 p.m. He took one hour off for lunch. If he earns $7 per hour, but does not get paid for lunch, how much did he earn for the entire day?

State the immediate effect of each of the following actions on M 1 and M 2 :

Question:

Step by Step Answer:

a Nothing happens to M ...View the full answer

Macroeconomics

Students also viewed these Business questions