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    Macroeconomics Study Set 41
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    Exam 8: Money, the Price Level, and Inflation
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    If You Use $500 of Currency to Make a Deposit
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If You Use $500 of Currency to Make a Deposit

Question 324

Question 324

Multiple Choice

If you use $500 of currency to make a deposit in a saving deposit,


A) M1 and M2 both increase
B) M1 is unchanged, but M2 increases
C) M1 decreases and M2 increases
D) M1 decreases, but M2 is unchanged

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