If a Person Withdraws $500 from His/her Savings Account and Puts

question 216

Multiple Choice

If a person withdraws $500 from his/her savings account and puts it in his/her checking account,then M1 will ________ and M2 will ________.

• A)increase; decrease
• B)increase; not change
• C)not change; increase
• D)not change; decrease
• E)not change; not change

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Definitions:

Lag

The time delay between a cause and its observable effect, often used in economics, technology, and signal processing contexts.

Straddle

In finance, a strategy involving the purchase or sale of both a call and a put option on the same asset, with the same expiration date and strike price, to profit from a significant price movement in either direction.

Bottlenecks

Points of congestion or obstruction in a system that significantly delay the process flow or reduce the overall system's performance.

Substantial Research

Extensive and comprehensive investigation or study dedicated to a specific topic, aiming to uncover or verify information or theories.