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Suppose That Bob Had $500 in Travelers Checks Unused from His

Question 167

Multiple Choice

Suppose that Bob had $500 in travelers checks unused from his trip to Italy and he decides to deposit the checks to his savings account. This transaction will:


A) keep M1 unchanged and increase M2.
B) decrease M1 and keep M2 unchanged.
C) increase M1 and M2.
D) decrease M1 and M2.

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