How does M2 differ from M1?
A. M2 includes everything in M1 plus savings and certificates of deposits, as well as money market mutual funds.
B. M1 is made up of coins and currency in circulation while M2 is made up of demand deposits and savings deposits.
C. M1 includes money in circulation plus demand deposits while M2 also includes savings deposits.
D. M1 is made up of coins and currency in circulation while M2 is made up of money held by the government
Answer: A. M2 includes everything in M1 plus savings and certificates of deposits, as well as money market mutual funds.
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