Question

If Andrew takes $10 from his wallet and deposits it into his checking account, what happens to M1 and M2?

(1 point)
A.
Both M1 and M2 increase.
B.
M1 decreases and M2 increases.
C.
Both M1 and M2 are unaffected.
D.
M1 is unaffected and M2 decreases

Answer 1

B. M1 decreases and M2 increases