Sara has $5,000 in a Citibank time deposit. She withdraws her $1,000 from her savings deposit account,

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Sara has $5,000 in a Citibank time deposit. She withdraws her $1,000 from her savings deposit account, keeps $50 in cash, and deposits the balance in her checkable account at Citibank. What are the immediate changes in M1 and M2?

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Foundations of Macroeconomics

ISBN: 978-0132831000

6th edition

Authors: Robin Bade, Michael Parkin

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Question Posted: Mar 04, 2016 07:42 AM

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Sara has $5,000 in a Citibank time deposit. She withdraws her $1,000 from her savings deposit account,

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M 1 immediately rises by the full amount of the 1000 withdra...View the full answer

Foundations of Macroeconomics

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