initially M1 is 1000 m2 is 4000 m3 is 6000 find the size of each if demand deposits rise by 100?

Question

economics

Answer 1

M0 is the amount of notes and coins that are in circulation, plus certain accounts with the central bank

M1 is M0 + the amount in demand accounts ("checking" or "current" accounts).

M1 is a subset of M2, M3 etc

Therefore, if demand deposits go up by 100, then M1 goes up by 100, as do M2 and M3.