Answer:
The answer is: A) M1 stays the same and M2 stays the same
Step-by-step explanation:
Total money supply is divided into:
- M1 includes all coins and bills in circulation plus traveler's checks and checking account deposits.
- M2 includes M1 plus savings accounts, short term deposits and money market accounts.
- M3 includes M2 plus long term bank deposits and institutional money market funds.