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Unformatted text preview: d) travelers check holdings are M1 e) CitiBank Platinum MasterCard is not part of the money supply. 2.4) When you deposit the $2,000 cash into a checking account, currency in circulation (M1) decreases, and checking account deposits (M1) increases. Therefore, M1 is unchanged. If M1 is unchanged and no actions are taken in M2, M2 remains unchanged also....
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This note was uploaded on 01/14/2012 for the course ECO 210 taught by Professor Morvey during the Fall '10 term at Piedmont TC.
- Fall '10