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Assume that Robin's checking account at Folsom Bank has a balance of $2,000. If Robin withdraws $200 of cash from the bank's ATM machine, by what amount does the M1 money supply change as a result of this
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Assume that Robin's checking account at Folsom Bank has a balance of $2,000. If Robin withdraws $200 of cash from the bank's ATM machine, by what amount does the M1 money supply change as a result of this single, isolated transaction?

a. No change.
b. M1 increases by $200.
c. M1 decreases by $200.
d. M1 increases by $200 times the reserve multiplier.

User Dschoni
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4.0k points

1 Answer

7 votes

Answer:

c

Step-by-step explanation:

because he got out 200 from his bank

User Harin
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4.2k points
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