Author Question: If you hold 25 in cash, have 150 in a checking account, and have 250 in a savings account, how much ... (Read 120 times)

OSWALD

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If you hold 25 in cash, have 150 in a checking account, and have 250 in a savings account, how much of M2 do you have?
 
  What will be an ideal response?

Question 2

Explain the connection between opportunity cost and the PPF.
 
  What will be an ideal response?



flexer1n1

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Answer to Question 1

All of the assets mentioned are included in M2, so you have 25 + 150 + 250 = 425 of M2.

Answer to Question 2

When moving along the production possibilities frontier, more of one good or service can be obtained only by giving up another good or service. The good or service given up is the opportunity cost of the good or service obtained.



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