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Why Has the Distinction Between M1 and M2 Been Blurred

Question 19

Multiple Choice

Why has the distinction between M1 and M2 been blurred over time?  


A)  M1 is now larger than M2. 
B)  Depositors can transfer funds between accounts so easily. 
C)  M1 is becoming less liquid. 
D)  Banks are offering time deposits.

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