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1. What happens to M1 and M2 due to each of the follow- ing changes? a. You take $500 out of your checking account and

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1. What happens to M1 and M2 due to each of the follow- ing changes? a. You take $500 out of your checking account and . put it into a passbook savings account. b. You take $1000 out of your checking account and buy traveler's checks. C. You take $1500 out of your money-market mutual fund and deposit into your checking account. d. You cash in $2000 in savings bonds and invest the money in a certificate of deposit

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