Rick withdraws $500 from his savings account, keeps $100 as currency, and deposits $400 in his checking
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Rick withdraws $500 from his savings account, keeps $100 as currency, and deposits $400 in his checking account.
A. M1 increases by $400 and M2 decreases by $500.
B. M1 does not change, but M2 decreases by $500.
C. M1 does not change, but M2 decreases by $400.
D. M1 increases by $500 and M2 does not change.
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Answer D When the 500 was in the savings accoun...View the full answer
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