Describe the differences between M1 and M2
M1 is the narrow definition of the money supply. It only includes money that can be directly used for everyday transactions. M1 consists of traveler's checks, checkable deposits, and currency held outside banks. M2 is the broad definition of the money supply. M2 is made up of M1 plus savings deposits, small-denomination time deposits, and retail money market mutual funds.
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If you win money in a casino you may be more likely to spend that money than your hard-earned cash. This is called:
a. compartmentalizing b. self control c. rule of thumb d. anchoring
The typical welfare family consists of a ____________ and ____________ children.
Fill in the blank(s) with the appropriate word(s).
The California gold rush resulted in an increase in the amount of money in circulation and an increase in prices across the country
Indicate whether the statement is true or false
An increase in quantity demanded is a shift in the entire demand curve.
a. true b. false