a) an increase in totalsaving deposit in the economy will increase M2 as m2 comprises all the components of m1 and savings and time deposits etc. m1 will be unaffected as it doesnot include savings account as its component.

b) if house holds shift some of there savings from time deposit to there saving deposit,then both M1 and M2 will stay unaffected.

c)if house hold converts some of there checking account deposits to currency then it will not affect m1 and m2 because m1 includes both checking account and currency and m2 includes all components of m1 so any change in between will not affect any of them.

d)if household convert some of there savings deposits into currency then it will affect only M1 and there will be no effect on M2.