M2 consists of:
a. M1 plus savings accounts, small time deposits, money market mutual funds, and miscellaneous near-monies.
b. coins, currency, and checkable deposits only

The substantial risks taken by financial intermediaries like Sallie Mae because they are effectively insured are examples of what economists refer to as: a. sub-prime behavior

b. asymmetric information. c. moral hazard. d. countercyclical policy.

Which of the following correctly represents the budget deficit?

a. Tax revenue - government purchases b. Tax revenue - government outlays c. Government purchases - tax revenue d. Government outlays - tax revenue e. Government outlays - tax revenue - transfer payments