If the Current Penny Was Made Worth Five Cents Rather

question 112

Multiple Choice

If the current penny was made worth five cents rather than its current value of one cent,what would be the effect on M1?

• A) It would rise.
• B) It would fall.
• C) M1 would rise, and M2 would remain constant.
• D) It would only affect M2.

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Definitions:

Relevant

Closely connected or appropriate to the matter at hand.

Indirect Approach

A communication strategy where the main point is presented after providing background information, often used to soften negative news.

Prepared

The state of being ready and well-equipped to handle or deal with something.

Obscured

Refers to something that is not clear or hard to understand due to being hidden or covered.