Which of the following best completes the statement? If people increase their currency holdings, all else the same, the monetary base
A. Does not change but the quantity of M2 will decrease.
B. The monetary base increases as does the quantity of M2.
C. The monetary base decreases as does the quantity of M2.
D. There is no change to either the monetary base or M2.
Answer:A
Which of the following best completes the statement? If people increase their currency holdings, all else the same, the monetary base
A. Does not change but the quantity of M2 will decrease. B. The monetary base increases as does the quantity of M2. C. The monetary base decreases as does the quantity of M2. D. There is no change to either the monetary base or M2.