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If an Individual Moves Money from a Demand Deposit Account

Question 36

Multiple Choice

If an individual moves money from a demand deposit account to a money market mutual fund, ________.


A) M1+ decreases and M2 stays the same
B) M1+ stays the same and M2+ increases
C) M1+ stays the same and M2 stays the same
D) M1+ decreases and M2 decreases

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