Donovan's $200,000 CD Matures

question 41

Essay

Donovan's $200,000 CD matures.He deposits $20,000 into his checking account, buys a CD for $150,000, and puts $30,000 into his money-market mutual fund.How does this affect M1 and M2?

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Definitions:

Phonology

The study of language sounds.

Twentieth-century

The period from the year 1901 to 2000, marked by significant advancements in technology, science, and social change.

Linguists

Linguists are experts in the study of languages, focusing on the structure, evolution, phonetics, and sociocultural implications of human language.

Theories

Concepts or models proposed to explain certain observations, phenomena, or scientifically tested principles.