Question: An increase in demand deposits combined with an equal decrease in currency in circulation would a. have no direct effect on M1 or M2. b.

An increase in demand deposits combined with an equal decrease in currency in circulation would

a. have no direct effect on M1 or M2.

b. increase both M1 and M2.

c. increase M1 and decrease M2.

d. decrease M1 and increase M2.

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