Freema Withdraws $1,000 from Her Checking Account to Purchase a $1,000

question 23

Multiple Choice

Freema withdraws $1,000 from her checking account to purchase a $1,000 time-deposit.
As a result of her transaction,

• A) M1 and M2 decrease.
• B) M1 decreases and M2 increases.
• C) M1 decreases and M2 is unaffected.
• D) M1 and M2 are unaffected.

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Definitions:

Stroke

A medical condition occurring when the blood supply to part of the brain is interrupted or reduced, causing brain cells to die due to a lack of oxygen.

Heart Disease

A range of conditions affecting the heart, including coronary artery disease, heart rhythm problems, and heart defects.

Emphysema

A chronic lung disease characterized by overdistension of the alveolar sacs and inability to exchange oxygen and carbon dioxide.

Cyanosis

A bluish discoloration of the skin and mucous membranes due to insufficient oxygen in the blood.