Derek Decides to Forego a Major Appliance Purchase and Save

question 39

Multiple Choice

Derek decides to forego a major appliance purchase and save the money.He transfers $2,100 from his checking account to his money market mutual fund.As a result of this transfer,

• A)both M1 and M2 decrease by $2,100.
• B)M1 increases by $2,100 and M2 increases by $2,100.
• C)M1 decreases by $2,100 and M2 increases by $2,100.
• D)M1 decreases by $2,100 and M2 stays the same.

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Definitions:

Global Temperatures

A measure of the average temperature of the Earth's surface, which has been increasing due to factors like greenhouse gas emissions.

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to analyze the effect of one variable on another while holding everything else constant.

Variables

Elements, features, or factors that are likely to vary or change.

Economists

Professionals who study how societies use available resources to produce valuable commodities and distribute them among different people.