Question

Suppose that the value in traveler’s checks increases and nothing else changes. We can assume that...

Suppose that the value in traveler’s checks increases and nothing else changes. We can assume that ________.

Question 7 options:

a)

M1 and M2 will increase

b)

M1 will increase and M2 will stay the same

c)

M2 will increase and M1 will stay the same

d)

M1 and M2 with both remain the same

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Answer #1

Answer

Option a

M1 and M2 will increase

the traveler’s check is a part of M1 and M2 so the increase in it without changing anything else increases the M1 and M2 both.

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