Which of the following is included in both M1 and M2?

When the real interest rate rises in the anchor country, ________

A) expansionary monetary policy will be used to maintain the interest rate peg B) an economic stimulus is transmitted to pegged economies C) there will be downward pressure on the value of pegged currencies D) the anchor currency becomes vulnerable to a speculative attack

A perfectly competitive firm may, under some circumstances, be able to affect the market price

a. True b. False Indicate whether the statement is true or false