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Millie withdraws $1,000 from her checking account so she can have $1,000 in cash. If no other changes occur, M1 will
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Millie withdraws $1,000 from her checking account so she can have $1,000 in cash. If no other changes occur, M1 will

User Thiyagaraj
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1 Answer

5 votes

Answer:

M1 will not change

Step-by-step explanation:

M1 is the money supply that is composed of physical currency , coin, demand deposits, travellers' checks, checking accounts, and negotiable order of withdrawal (NOW) accounts. M1 includes the most liquid of money supply.

Because checking account and cash are both components of M1, there would be no change in M1

User Tjdett
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