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Please show all work Monetary aggregates II. For each of the following transactions identify by how much M1 and M2 change. (a) (3 points) You
Please show all work
Monetary aggregates II. For each of the following transactions identify by how much M1 and M2 change. (a) (3 points) You receive a check for $2,500 from your employer. You deposit the check into your checking account. You then withdraw $500 as cash and transfer $1,000 into your savings account, and use the remainder to purchase shares of a stock market mutual fund (b) (3 points) Umut has $4 million of funds in a savings account. He moves $2 million of the funds from his savings account into a retail money market mutual fund (RMMMF) account. He then moves $1 million from his savings account to his checking account Answer: (a) Change in M1: $2,000. Change in M2: $1,000. (b) Change in Ml: $1 million. No change in M2Step by Step Solution
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