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A bank customer withdraws $5000 out of his checking account and uses the cash to buy a 2-year certificate of deposit. What happens to M1and
A bank customer withdraws $5000 out of his checking account and uses the cash to buy a 2-year certificate of deposit. What happens to M1and M2? A. M2 falls but M1 remains unchanged. B. M1 and M2 both fall. C. M1 and M2 both remain unchanged. D. M1 increases and M2 also increases. E. M1 falls but M2 remains unchanged.If the United States' economy is at full employment, A. then there is no unemployment. B. then there is no frictional unemployment C. then there is no structural unemployment. D. then there is no cyclical unemployment
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