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if an individual moves money from a small denomination time deposit to a demand depo 637839

1) If an individual redeems a U.S. savings bond for currency

A) M1 stays the same and M2 decreases.

B) M1 increases and M2 increases.

C) M1 increases and M2 stays the same.

D) M1 stays the same and M2 stays the same.

2) If an individual moves money from a small denomination time deposit to a demand deposit account,

A) M1 increases and M2 stays the same.

B) M1 stays the same and M2 increases.

C) M1 stays the same and M2 stays the same.

D) M1 increases and M2 decreases.

3) If an individual moves money from a demand deposit account to a money market deposit account,

A) M1 decreases and M2 stays the same.

B) M1 stays the same and M2 increases.

C) M1 stays the same and M2 stays the same.

D) M1 increases and M2 decreases.

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