Which of the following correctly describes the difference between M1 and M2?
a. M1 includes currency, coins, gold and silver, whereas M2 does not contain gold and silver.
b. M1 is made up of currency, traveler's checks, and money in checkable accounts, whereas M2 contains M1 plus savings deposits, small-denomination time deposits, and money market mutual funds.
c. M1 is limited to currency, whereas M2 contains M1 plus travelers checks and money in checkable accounts.
d. M1 includes currency and traveler's checks, whereas M2 contains M1 plus money in checking accounts.
b
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Use the graph above to answer the following question. What can we conclude about the attitude towards risk this individual is portraying given this utility function?
What will be an ideal response?
Under tort law, compensatory damages are awarded in order to
a. compensate individuals who are injured as a result of the intentional behavior of others. b. compensate individuals who are injured as a result of the negligent behavior of others. c. punish those who injure others intentionally d. to deter others from taking risks
When insurance companies use observable information about people to reveal private information, it is called ______.
a. adverse selection b. asymmetric information c. screening d. standardization
Advertising can create a barrier to entry of new firms into an industry and therefore reduce competition.
Answer the following statement true (T) or false (F)