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Suppose You Find a $50 Bill That You Put in a Coat

Question 42

Multiple Choice

Suppose you find a $50 bill that you put in a coat pocket last winter. If you deposit it in your checking account:


A) M1 increases by $50.
B) M2 increases by $50.
C) M1 and M2 both increase by $50.
D) there is no change in M1 or M2.

Correct Answer:

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