Macroeconomics 5th Edition by Olivier Blanchard

تمرين 8

Explain how each of the developments listed in (a) through (d) would affect the demand for M 1 and M 2. a. Banks reduce penalties on early withdrawal from time deposits.
b. The government forbids the use of money market funds for check-writing purposes.
c. The government legislates a tax on all ATM transactions.
d. Congress decides to impose a tax on all transactions involving government securities with maturities of more than one year.