Which of the following is a difference between M1 and M2?
a. M1 includes the most liquid assets, while the assets included in M2 are comparatively less liquid
b. M2 includes the most liquid assets, while the assets included in M1 are comparatively less liquid.
c. M2 includes bank accounts from which money can be withdrawn with personal checks, while M1 includes bank accounts from which money cannot be withdrawn with personal checks.
d. M2 includes bank accounts from which money can be withdrawn with personal checks, while M1 includes bank accounts from which money can be withdrawn with debit cards.
a
You might also like to view...
The United States is one of the richest nations in the world,
A) so it does not need to trade with poor nations in order to achieve any gains from trade. B) so it might not have a comparative advantage in producing any goods. C) but it can still benefit from specialization and trade. D) so it must have a comparative advantage in the production of all goods. E) so it must have an absolute advantage in the production of all goods.
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and GDP Price Index in the context of the Three-Sector-Model?
a. The real risk-free interest rate rises, and GDP Price Index rises. b. The real risk-free interest rate falls, and GDP Price Index falls. c. The real risk-free interest rate rises, and GDP Price Index falls. d. The real risk-free interest rate and GDP Price Index remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
We would expect the cross elasticity of demand for Pepsi to be greater in relation to other soft drinks than that for soft drinks in general because:
A. soft drinks are normal goods. B. the income effect always exceeds the substitution effect. C. there are fewer good substitutes for soft drinks as a whole than for Pepsi specifically. D. there are more good substitutes for soft drinks as a whole than for Pepsi specifically.
If the infant industry argument is used to protect an industry that has already matured, then
A) consumers lose because they will pay a price for a product that is above the world price. B) consumers lose because they will pay a price for a product, which is less than the world price. C) stockholders lose because the firm cannot compete with other firms. D) no one loses.