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Q1 (5%) Suppose you have $50,000.00 in mutual market funds. Describe the initial effect of selling all your mutual market fund shares on the monetary
Q1 (5%) Suppose you have $50,000.00 in mutual market funds. Describe the initial effect of selling all your mutual market fund shares on the monetary aggregates MI and M2 when: . You keep the proceeds in a check account. . You decide to invest in common stock. . You use the proceeds to buy a certificate of deposit. . You lend the money out to a friend. Do MI and M2 increase, decrease or stay the same. Why? (do not worry about the possible actions that follow your decision)
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