Would this be good or bad for the economy

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What is consumer confidence and what role does it play in the economy? What effect, if any, would consumers pulling money out of their checking accounts and putting it into home safes have on investment, interest rates, and GDP? Would this be good or bad for the economy?

What are M1 and M2? What impact would this action (pulling money from checking accounts) have on the size of the M1 and M2 components of the money supply?

Reference no: EM131103795

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