M2 is A) smaller than M1. B) larger than M1. C) equal to M1, ...

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M2 is
 
  A) smaller than M1.
  B) larger than M1.
  C) equal to M1, given full employment.
  D) equal to M1, but only when all three functions of money apply.

Question 2

In the above figure, an increase in the expected profit will result in a movement from point E to
 
  A) point F.
  B) point G.
  C) point H.
  D) point I.

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Answer to Question 1

B

Answer to Question 2

A