Which one of the following is part of the M2 definition of the money supply, but not part of M1?
A. Small time deposits such as certificates of deposit.
B. Travelers’ checks.
C. Currency held in banks.
D. Currency in circulation.
Ans: A. Small time deposits such as certificates of deposit.
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In the figure above, the shift in the supply curve for U.S. dollars from S0 to S1 could occur when
A) the U.S. interest rate rises. B) foreign interest rates rise. C) the expected future exchange rate falls. D) the current exchange rate rises.
When a citizens' group opposes expansion of the prison located in town, the basis of the opposition is that the larger prison will produce
a. a negative externality for the community b. a positive externality for the community c. more jobs in the community d. tax revenue for the community e. improved criminal justice options