Jared read an article that showed a dramatic increase in money market accounts and certificates of deposit in the last quarter. The story reported that all other major components of the U. S. money supply remained unchanged. Based on this information, Jared can conclude that for the past quarter (1) both the M-1 and the M-2 money supplies have increased. (2) the M-2 money supply has increased, but the M-1 money supply was stable. (3) the M-1 money supply has increased, but the M-2 money supply was stable. (4) both the M-1 and M-2 money supplies were stable.
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