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Suppose That Bob Had $500 in Travelers Checks Unused from His

Question 8

Multiple Choice

Suppose that Bob had $500 in travelers checks unused from his trip to Italy and he decides to deposit the checks to his checking account. This transaction will:


A) increase M1 and M2.
B) keep M1 unchanged and increase M2.
C) keep M1 and M2 unchanged.
D) decrease M1 and M2.

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