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Assuming No Other Changes, If Checkable Deposits Increase by $40

Question 92

Multiple Choice

Assuming no other changes, if checkable deposits increase by $40 billion and currency in circulation decreases by $40 billion, the


A) M1 money supply will decline.
B) M1 money supply will not change.
C) M2 money supply will decline.
D) M2 money supply will increase.

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