Suppose Jared takes $200 from his savings account and holds it as cash. The immediate result of this transaction is that M2

A. Increases by $200 and M1 remains the same.
B. Decreases by $200 and M1 remains the same.
C. Remains the same and M1 increases by $200.
D. And M1 do not change.


Answer: C

Economics

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