For each of the following transactions, what is the initial effect (increase or decrease) on M1? On
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For each of the following transactions, what is the initial effect (increase or decrease) on M1? On M2? On M2+?
a. You sell a few shares of stock and put the proceeds into your savings account in a chartered bank.
b. You sell a few shares of stock and put the proceeds into your chequing account in a chartered bank.
c. You transfer money from your savings account to your chequing account in a chartered bank.
d. You discover $0.25 under the floor mat in your car and deposit it in your chequing account.
e. You discover $0.25 under the floor mat in your car and deposit it in your savings account in a credit union.
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Related Book For
Macroeconomics
ISBN: 978-1319120054
3rd Canadian edition
Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson
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