question 23 (1 point) if an individual redeems a canada savings bond in exchange for currency, ________. m1+…

question 23 (1 point) if an individual redeems a canada savings bond in exchange for currency, ________. m1+ increases and m2++ stays the same m1+ stays the same and m2++ stays the same m1+ stays the same and m2++ decreases m1+ increases and m2++ increases

question 23 (1 point) if an individual redeems a canada savings bond in exchange for currency, ________. m1+ increases and m2++ stays the same m1+ stays the same and m2++ stays the same m1+ stays the same and m2++ decreases m1+ increases and m2++ increases

Answer

Brief Explanations:

M1+ includes currency in circulation and demand deposits. When a Canada - savings bond is redeemed for currency, currency in circulation increases, so M1+ increases. M2++ is a broader measure of the money supply that includes M1+ and other types of deposits and savings instruments. Since the money is just moving from a non - M1+ savings instrument (Canada savings bond) to currency (part of M1+), the total amount of money in M2++ remains the same as no new money is created or destroyed in the process.

Answer:

M1+ increases and M2++ stays the same