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If an Individual Moves Money from a Demand Deposit Account

Question 30

Multiple Choice

If an individual moves money from a demand deposit account to a money market deposit account


A) M1 decreases and M2 stays the same.
B) M1 stays the same and M2 increases.
C) M1 stays the same and M2 stays the same.
D) M1 increases and M2 decreases.

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