Suppose your $50,000 certificate of deposit matures and you transfer the funds to your checking account. This causes
A) M1 to decrease by $50,000 and M2 to increase by $50,000.
B) M1 to increase by $50,000 and M2 to remain the same.
C) both M1 and M2 to increase by $50,000.
D) no change to either M1 or M2.
Correct Answer:
Verified
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