If You Use $500 of Currency to Make a Deposit

question 324

Multiple Choice

If you use $500 of currency to make a deposit in a saving deposit,

• A) M1 and M2 both increase
• B) M1 is unchanged, but M2 increases
• C) M1 decreases and M2 increases
• D) M1 decreases, but M2 is unchanged

---

Definitions:

Product Variety

The range of different products or services offered by a company or available in a market.

Benefits

Advantages or positive outcomes that result from actions, policies, or products.

Monopolistically Competitive Markets

Markets characterized by many sellers offering products that are similar but not identical, allowing for some degree of market power and price differentiation.

Product Differentiation

This is a strategy where companies distinguish their products from those of competitors on bases such as quality, design, or customer service.