Please choose the correct answer: If everyone in the economy decides to close their bank accounts and hold all their money on hand, this will cause overall M1 to rise / fall / remain unchanged / change ambiguously and overall M2 to rise / fall / remain unchanged / change ambiguously

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter13: Money And The Banking System
Section: Chapter Questions
Problem 2CQ
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Please choose the correct answer:

If everyone in the economy decides to close their bank accounts and hold all their money on
hand, this will cause overall M1 to rise / fall / remain unchanged / change ambiguously and
overall M2 to rise / fall / remain unchanged / change ambiguously

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