Most empirical data support the idea that money demand depends on the interest rate.

The figure shows the demand curve for popsicles. The price elasticity of demand when the price of a popsicle increases from $0.30 to $0.50 is ________

A) 0 B) 1 C) 1/2 D) 2

The M2 money supply

A) includes M1. B) is commonly referred to as the broad definition of the money supply. C) includes savings deposits. D) is larger than M1. E) all of the above