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

Question 40

Multiple Choice

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


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

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