Why must the M2 measure of the money supply always be larger than the M1 measure?
What will be an ideal response?
The M2 measure of the money supply includes everything that is measured in M1, plus savings account balances, money market mutual fund balances, and small certificates of deposit, so since M1 is included in M2, M2 must be larger than M1.
Economics
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What is the law of diminishing returns? Give an example of what the law of diminishing returns implies
What will be an ideal response?
Economics
If gold becomes acceptable as a medium of exchange, the demand for gold will ________ and the demand for bonds will ________, everything else held constant
A) decrease; decrease B) decrease; increase C) increase; increase D) increase; decrease
Economics