Explain What Will Happen to the Size of Both M1

question 43

Essay

Explain what will happen to the size of both M1 and M2 in each of the following situations:
(a) Jane, a millionaire, withdraws $500,000 from her money market account to buy a famous painting.
(b) Paul transfers $10,000 from his NOW account to his savings account.
(c) Sarah takes $5,000 out of her checking account to buy IBM stock.

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Definitions:

Doxing

The act of publicizing private or identifying information about an individual online without their consent, often for malicious purposes.

Community Relationships

The connections and networks developed among individuals within a community that facilitate cooperation and support.

Social Capital

The networks, relationships, and norms that enable collective action and contribute to the social cohesion and economic prosperity of communities.

Legitimate Power

Authority that an individual or group possesses that is accepted and recognized by others, often stemming from a formal position or role.