Question: Q2. Use the following data to answer the questions below: Currency Checking Accounts Saving Accounts Time Deposits Money Market Fund Shares $1,500 3,000 4,500 8,000

Q2. Use the following data to answer the questions below: Currency Checking Accounts Saving Accounts Time Deposits Money Market Fund Shares $1,500 3,000 4,500 8,000 9,000 1 a. Calculate Mi b. Calculate M2 c. If households and firms decide to hold less money in checking accounts and more in currency, what will happen to the money supply? d. If credit card balances were $2,000, how does that affect the values of M1 and M2? Why? In general, what is the impact of a contractionary monetary policy on investment? e

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