M2 is equal to M1 plus:
a. savings deposits, money market deposit accounts, small time deposits, and eurodollars.
b. savings deposits, money market deposit accounts, money market mutual funds, and eurodollars.
c. small time deposits, money market deposit accounts, money market mutual funds, and eurodollars.
d. savings deposits and small time deposits of less than $100,000.
e. money market mutual funds, money market deposit accounts, savings deposits, large time deposits, and repurchase agreements.
d
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Suppose an economy experiences a reduction in productivity. Explain both the short-run and medium-run effects of this reduction in productivity on output, employment, and the unemployment rate
What will be an ideal response?
Return to the case of Jan, the hyperbolic discounter from the previous question. Suppose she can sign a contract that requires her to give up money equivalent to a loss of X utils if she does not undertake the action. Assume she does not behave consistent with her plans without this contract. How high would the contractual value of X have to be to prevent her inconsistency?
a. C – B/2. b. B. c. C. d. B + C.