Answer:
A. Increase by $75 and M2 to remain the same.
Explanation:
savings deposits, along with money market securities, mutual funds, and other time deposits are considered near money which are added to M1 to get M2
M1 will be the currency, checking account, traveler check and other wich are the most liquid form of cash.
Thus, the money supply M2 will be the same as the money went into M1 which is included in M2
and M1 increases by 75 as this cash wasn't included before.
