If an individual redeems a U.S. savings bond for currency A) M1 stays

If an individual redeems a U.S. savings bond for currency

A) M1 stays the same and M2 decreases.
B) M1 increases and M2 increases.
C) M1 increases and M2 stays the same.
D) M1 stays the same and M2 stays the same.

 

ANSWER

B

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