Other Things Being Equal, If You Took Money Out of Your

question 180

Multiple Choice

Other things being equal, if you took money out of your savings deposit account and put it in a demand deposit account:

• A)​M1 would increase and M2 would increase.
• B)​M1 would increase but M2 would not change.
• C)​M1 would decrease and M2 would decrease.
• D)​M1 would fall but M2 would not change.

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Definitions:

Propylnonane

A hypothetical chemical compound, likely meant to represent a molecule composed of a propyl group attached to a nonane backbone, but does not match standard naming conventions.

Ethyl

A two-carbon alkyl functional group derived from ethane, commonly found in many organic compounds.

Primary Alkane

Alkanes where the carbon atoms are connected in a straight chain without any branches.

Gasoline

A volatile, flammable liquid made from crude oil or petroleum, used primarily as fuel in internal combustion engines.