Suppose You Find a $50 Bill That You Put in a Coat

question 42

Multiple Choice

Suppose you find a $50 bill that you put in a coat pocket last winter. If you deposit it in your checking account:

• A) M1 increases by $50.
• B) M2 increases by $50.
• C) M1 and M2 both increase by $50.
• D) there is no change in M1 or M2.

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Definitions:

Pleasure Principle

A concept in psychoanalytic theory referring to the instinctual seeking of pleasure and avoidance of pain to satisfy biological and psychological needs.

Morality

Principles or standards determining what behaviors are considered right or wrong by a society or individual.

Hormones

Chemical messengers produced by glands in the body that regulate physiological activities and maintain homeostasis.

Neurotransmitters

Substances that carry signals between neurons across synapses within the nervous system.