urgentlly nees

Question 7 [1 point} Question 06: State the immediate effect of each of the following actions on M1 and M2 (increase, decrease. and by how much. or no change}: FOR EXAMPLE: 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 money market account. THE ANSWER IS M1 DECREASES BY $150 SINCE ORIGINAL CHECK WAS PART OF M1ICHECKABLE DEMAND DEPOSITS} AND AT THE END M1 WAS ONLY $50 IN CASH. THE $150 IN THE MONEY MARKET ACCOUNT IS PART OF M2. REALLY THERE WAS NO CHANGE IN M2. SINCE EVERYTHING MENTIONED IS PART OF M2. REMEMBER, M2 ALSO INCLUDES EVERYTHING IN M1. a} Ahmed takes $1,000 from his checking account and buys a US. Treasury Bond. b} Sylyia $500 certificate of deposit comes due and she cashes it in taking the money in ten $50 bills from the bank teller. O A] Part {a} with Ahmed: M1 -> down by $1000; M2 -> no change. Part [b] with Sylyia: M1 -> down by $500; M2 -> no change 0 B} Part (a) with Ahmed: M1 -a down by $1000; M2 -a up by $1000. Part [b] with Sylyia: M1 -:'-* down by $500: M2 -> up by $500 0 CI Part (a) with Ahmed: M1 -> down by $1000 -> down by $1000. The Treasury Bond is not part of either M1 nor M2. Part [b] with Sylyia: M1 -:=~ up by $500: M2 -==- no change since both cash and certificates of deposit are part of M2