Multiple Choice
Other things constant, which of the following would cause the M2 money supply to decline?
A) an increase in the quantity of U.S. currency held overseas
B) a shift of funds from interest-earning checking accounts to money market mutual funds
C) a reduction in the general public's holdings of currency outside of banks because debit cards have become more popular and widely accepted
D) a shift of funds from money market mutual funds into stock and bond mutual funds because the fees to invest in the latter have declined
Correct Answer:
Verified
Correct Answer:
Verified
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