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If an Individual Uses Money from a Demand Deposit Account

Question 92

Multiple Choice

If an individual uses money from a demand deposit account to purchase a U.S. savings bond


A) M1 decreases and M2 stays the same.
B) M1 stays the same and M2 increases.
C) M1 stays the same and M2 stays the same.
D) M1 decreases and M2 decreases.

Correct Answer:

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