Why must the M2 measure of the money supply always be larger than the M1 measure?
What will be an ideal response?
The M2 measure of the money supply includes everything that is measured in M1, plus savings account balances, money market mutual fund balances, and small certificates of deposit, so since M1 is included in M2, M2 must be larger than M1.
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A. negative; negative B. positive; positive C. positive; negative D. negative; positive
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