Business, 28.01.2020 22:42, prettygirlgwen24

Suppose your bank lowers its minimum balance requirement to get free checking by $500. so you take $500 out of your checking account and put it into your savings account. what is the overall effect on m1 and m2?

m1 falls by $500, m2 rises by $500.

m1 falls by $500, m2 is unchanged.

m1 is unchanged, m2 is unchanged.

m1 is unchanged, m2 rises by $500.

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Suppose your bank lowers its minimum balance requirement to get free checking by $500. so you take $...