Suppose You Transfer $1,000 from Your Checking Account to Your

question 33

Multiple Choice

Suppose you transfer $1,000 from your checking account to your savings account. How does this action affect the M1 and M2 money supplies?

• A) M1 and M2 are both unchanged.
• B) M1 falls by $1,000, and M2 rises by $1,000.
• C) M1 is unchanged, and M2 rises by $1,000.
• D) M1 falls by $1,000, and M2 is unchanged.

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Definitions:

Fertility-Rate Calculations

The computation of the average number of children that would be born to a woman over her lifetime in a specific population.

Replacement Rate

In economics, the ratio of a person's retirement income to their pre-retirement income, often focused on social security benefits.

Populations

Groups of individuals of the same species living and interacting within a specific area.

Total Demand

The entire quantity of a good or service that all consumers in a market are willing and able to purchase at a given price over a specific time period.