Question
If you take $\$ 100$ out of your piggy bank and deposit it in your checking account, how did M1 change? Did M2 change?
Step 1
M1 is a measure of the money supply that includes physical currency and coin, demand deposits, travelers checks, and other checkable deposits. M2 is a measure of the money supply that includes M1, plus savings deposits, small time deposits, and money market funds. Show more…
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If you take $100$dollars out of your piggy bank and deposit it in your checking account, how did M1 change? Did M2 change?
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