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The Balance Owed on Credit Cards in the United States

Question 178

Multiple Choice

The balance owed on credit cards in the United States in 2014 was $880 billion. When consumers pay off this balance in full,


A) M1 will decrease by $880 billion.
B) M1 will remain unchanged but M2 will decrease by $880 billion.
C) neither M1 nor M2 will change.
D) M1 will increase by $880 billion.

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