Assuming No Other Changes, If Checkable Deposits Increase by $40

question 92

Multiple Choice

Assuming no other changes, if checkable deposits increase by $40 billion and currency in circulation decreases by $40 billion, the

• A) M1 money supply will decline.
• B) M1 money supply will not change.
• C) M2 money supply will decline.
• D) M2 money supply will increase.

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