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Although the current operational definitions of M1 and M2 quite similar, if the nonbank public wants to hold more non-transactions savings accounts like money market
Although the current operational definitions of M1 and M2 quite similar, if the nonbank public wants to hold more non-transactions savings accounts like money market deposit accounts, small time deposits, or retail money market funds rather than checking accounts Q a. M1 and M2 would both remain unchanged. b. MI would rise and M2 would fall. C MI and M2 would both rise. M2 would rise and MI would fall
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