The difference between M1 and M2 is significant. Which of the following best describes the difference?
a. M1 is nearly three times as large as M2
b. M2 is made up mostly of demand and checkable deposits.
c. M2 is substantially larger than M1.
d. None of the above.
c
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A drought in the US Corn Belt will
A. shift the supply curve of US corn to the right. B. shift the supply curve of US corn to the left. C. shift the demand curve for US corn to the right. D. shift the demand curve for US corn to the left.
On a given day the quantity of money is ________ and the supply of money curve is ________
A) fixed; horizontal B) fixed; vertical C) variable; horizontal D) variable; vertical
When studying the effects of changes in public policy, economists believe that
a. it is important to distinguish between the short run and the long run. b. the assumptions used in studying those effects should be the same for the short run as for the long run. c. the short-run effects of those changes are always more beneficial to society than are the long-run effects. d. the long-run effects of those changes are always more beneficial to society than are the short-run effects.
If a good is normal, then an increase in income will result in
a. an increase in the demand for the good.
b. a decrease in the demand for the good.
c. a movement down and to the right along the demand curve for the good.
d. a movement up and to the left along the demand curve for the good.