If the central bank pursues an expansionary monetary policy, the growth rate of the money supply is likely to _____.
Which of the following changes would likely lead to an increase in the M1 money supply in the United States? Choose all that apply.
a. Many people decide to shift their money from savings account deposits to interest-earning checking accounts.
b. The recent financial crisis has led people to store their money in demand deposits rather than investing in money market mutual funds.
c. Many businesses decide to accept cash or checks only, due to the increasing incidences and severity of credit card fraud.
d. The U.S. dollar has become more popular among developing countries, and citizens in those countries increasingly use the dollar in their daily transactions.