If credit card balances rise in the economy, then M1 will ________ and M2 will ________. A increase; increase B not change; increase C decrease; increase D not change; not change E increase; decrease

If credit card balances rise in the economy, then M1 will ________ and M2 will ________.

A increase; increase
B not change; increase
C decrease; increase
D not change; not change
E increase; decrease

 

 

Answer:

option C

Credit card balances are not part of M1.

Asked on February 15, 2018 in economics.
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