If an individual redeems a Canada savings bond for currency, ________.

Name: If an individual redeems a Canada savings bond for currency, ________.
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When an individual redeems a Canada savings bond for currency, M1+ (which includes currency and demand deposits) increases because the individual now has more currency. M2++ (which includes M1+ and other forms of savings like the savings bond) stays the same because the increase in currency is offset by the decrease in savings bonds.

If an Individual Redeems a Canada Savings Bond for Currency