If Wolfgang Transfers $1,000 Out of His Chequable Deposit Account

question 98

Multiple Choice

If Wolfgang transfers $1,000 out of his chequable deposit account and places it in his non-chequable deposit account,

• A)M1 and M2 fall.
• B)M1 falls and M2 rises.
• C)M1 falls and M3 rises.
• D)M1 falls and M2 remains the same.
• E)M1 rises and M2 remains the same.

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