What Effect Would an Increase in Demand Deposits Combined with an Equal

question 39

Multiple Choice

What effect would an increase in demand deposits combined with an equal decrease in currency in circulation have?

• A)It would have no direct effect on M2 or M2+.
• B)It would decrease M2 and increase M2+.
• C)It would increase M2 and decrease M2+.
• D)It would increase both M2 and M2+.

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Definitions:

Safety Needs

In Maslow's hierarchy of needs, these are the second level of human needs, focusing on the security of the body, employment, resources, morality, the family, health, and property.

Individual Motivation

The internal and external factors that stimulate desire and energy in people to be continually interested and committed to a job, role, or subject.

Job Performance

The effectiveness with which job incumbents perform their tasks, duties, and responsibilities.

Organizational Culture

The collective values, beliefs, and standards that affect how employees perceive, feel, and act within a company.