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+.

---

Definitions:

Henry Murray

An American psychologist who developed the theory of needs and the Thematic Apperception Test (TAT) for personality assessment.

Personality Psychology

The study of individual differences in personality and how they affect behavior and mental processes.

Psychogenic Needs

Psychological desires or requirements that motivate individuals to act in certain ways, often described in terms of satisfaction and emotional well-being.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, often considered in psychology as patterns of thought, feeling, and behavior.