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John and Jane Decide to Go on a Vacation

Question 389

Multiple Choice

John and Jane decide to go on a vacation. As a result, they withdraw $2,500 from their savings account. As a result of this transfer by itself


A) M1 increases by $2,500 and M2 decreases by $2,500.
B) M1 increases by $2,500 and M2 stays the same.
C) M1 decreases by $2,500 and M2 stays the same.
D) M1 decreases by $2,500 and M2 decreases by $2,500.

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