M1 differs from M2 because ________
A) M2 includes components that are less liquid than any component of M1
B) M1 does not include savings deposits and M2 does
C) M1 is included in M2 but M2 has more components
D) all of the above
E) none of the above
D
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Suppose you withdraw $1,000 from your savings account and put it in your checking account. Briefly explain how this will affect M1 and M2
What will be an ideal response?
Financial securities that represent partial ownership of a corporation are known as
A) bonds. B) stocks. C) coupons. D) dividends.
If the cost of transportation increases by 20 percent, then, other things the same, the CPI is likely to increase by about
a. 0.3 percent. b. 1.6 percent. c. 3.2 percent. d. 10 percent.
If economists calculate the GDP for 2009, using current prices of year 2009, what are they estimating?
(A) Net national product (B) Real GDP (C) Nominal GDP (D) Depreciation