Multiple Choice
Assuming no other changes, if balances in money market deposit accounts increase by $50 billion and small- denominated time deposits decrease by $50 billion, the
A) M1 and M2 money supplies will not change.
B) M2 money supply will increase.
C) M1 money supply will decline.
D) M2 money supply will increase and the M1 money supply will decrease.
Correct Answer:
Verified
Correct Answer:
Verified
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