If Joe Withdraws a $100 Bill from His Checking Account

question 19

Multiple Choice

If Joe withdraws a $100 bill from his checking account and Jack deposits another $100 bill in his savings account, by how will M1 and M2 change?

• A)M1 will increase, and M2 will increase.
• B)Both M1 and M2 will remain the same.
• C)M1 will decrease, but M2 will remain the same.
• D)M1 will remain the same, and M2 will increase.
• E)M2 will decrease by $100.

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Definitions:

Role Identities

The attitudes, behaviors, and values associated with specific social roles that an individual inhabits, such as parent, worker, or student.

Student

An individual who is engaged in the process of learning at educational institutions.

Orchestra Member

An individual who plays an instrument as part of an orchestra, contributing to the collective performance of musical compositions.

Cognitive Theory

A theoretical perspective based on the premise that an individual’s mental activities (perception, memory, and reasoning) are important determinants of behavior.