If you liquidate $3,000 of your mutual fund and transfer the funds to your checking account,then initially,M1 will ________ and M2 will ________.

Name: If you liquidate $3,000 of your mutual fund and transfer the funds to your checking account,then initially,M1 will ________ and M2 will ________.
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M1 increases because the funds are moved to a checking account, which is part of M1. M2 does not change because it includes both mutual funds and checking accounts.

If You Liquidate $3,000 of Your Mutual Fund and Transfer