Question 10 Question 9 continues. Last year Kevin had borrowed $50,000 from Bank B. The loan...

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Question 10 Question 9 continues. Last year Kevin had borrowed $50,000 from Bank B. The loan is due today. Kevin has a saving account at Bank A. He withdraws $50,000 from his saving account at Bank A and pays back his loan to Bank B. After the loan is paid back to Bank B and after all those inter-bank settlements, here is what happens to the two monetary aggregates: M1 money now == M2 money now = dollars. dollars. 1 pts Compare these numbers to those in Question 3 above. What do you conclude? Question 10 Question 9 continues. Last year Kevin had borrowed $50,000 from Bank B. The loan is due today. Kevin has a saving account at Bank A. He withdraws $50,000 from his saving account at Bank A and pays back his loan to Bank B. After the loan is paid back to Bank B and after all those inter-bank settlements, here is what happens to the two monetary aggregates: M1 money now == M2 money now = dollars. dollars. 1 pts Compare these numbers to those in Question 3 above. What do you conclude?

Answer rating: 100% (QA)

The correct answer is beginarrayl text M1 money now 0 text M2 money now 50000 endarray In ... View the full answer