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25-10-2017
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Suppose you transfer $1,000 from your checking account to your savings account. how does this action affect the m1 and m2 money supplies?

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04-11-2017

When you transfer $1000 from your checking account to your savings account money supplies m1 being narrow definition just focuses on liquidity falls by $1000 and the money supplies m2 which is a broader definition of money supply remains unchanged.

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