Business, 06.04.2021 04:50, chrisdelreal86

Jane currently has $5,300 in her savings account and $2,000 in her checking account at the local bank. Instructions: A. If Jane withdraws $500 in cash from her savings account, by what dollar amount will the country's money supply (M1 and M2) change as a result of Jane's actions?
B. Suppose that after Jane withdraws $500 from her checking account, she uses $180 of this money to pay her federal income tax. After paying her taxes, Jane uses $160 to buy a set of used golf clubs from her neighbor, who then deposits the money into his checking account. Jane deposits the remaining cash from the $500 withdrawal into her savings account. By what dollar amount will the country's money supply change as a result of Jane's actions?

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Jane currently has $5,300 in her savings account and $2,000 in her checking account at the local ban...