Suppose that a large group of local merchants donate 10,000 "3-R Dollars" to local schools, a colorful local currency that the schools can spend at a wide variety of participating local stores as a perfect substitute for dollars, now or in the future. So, 3-R dollars meet the requirements of money

Which government program would be considered an "entitlement" program?

A) national defense B) subsidies for mass transportation C) law enforcement in major U.S. cities D) Social Security

When individuals shift funds from money market mutual funds to no-load stock and bond mutual funds,

a. the growth rate of M1 will decline but the growth of M2 will be unaffected. b. the growth rate of M2 will decline but the growth of M1 will be unaffected. c. the growth rate of both M1 and M2 will decline. d. the growth rate of both M1 and M2 will increase.