ItemBillions of DollarsCheckable Deposits$597Small Time Deposits818Currency639Money-Market Mutual Funds Held by Businesses1,045Savings Deposits, Including Money-Market Deposit Accounts2,866Money-Market Mutual Funds Held by Individuals979 Refer to the above table. The size of the M2 money supply is:

A new technology that increases labor productivity will shift the

a. demand curve for labor to the left b. MLC curve to the left c. MPP curve downward d. demand curve for labor to the right e. demand for the good to the right

Some people argue that there are two advantages to holding mutual funds. The first is that mutual funds provide an inexpensive way to hold a diversified portfolio. The second is that because of their expertise mutual fund managers should be able to consistently beat the market. Which of the following does the evidence show?

a. Diversification does reduce risk and mutual funds typically outperform the market. b. Diversification does reduce risk, but mutual funds do not typically outperform the market. c. Diversification does not reduce risk but mutual funds typically outperform the market. d. Diversification does not reduce risk and mutual funds do not typically outperform the market.