If you use $500 of currency to purchase a saving deposit,
A) M1 decreases and M2 increases.
B) M1 is unchanged, but M2 increases.
C) M1 and M2 both increase.
D) M1 decreases, but M2 is unchanged.

Question

Quizplus · Accepted Answer

The Answer of If you use $500 of currency to purchase a saving deposit,
A) M1 decreases and M2 increases.
B) M1 is unchanged, but M2 increases.
C) M1 and M2 both increase.
D) M1 decreases, but M2 is unchanged.

If You Use $500 of Currency to Purchase a Saving