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What Effect Would a Decrease in Currency in Circulation Combined

Question 148

Multiple Choice

What effect would a decrease in currency in circulation combined with an equal increase in savings account deposits have?


A) It would increase M2 but have no effect on M2+.
B) It would decrease both M2 and M2+.
C) It would increase both M2 and M2+.
D) It would have no effect on either M2 or M2+.

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