Author Question: M2 equals A) M1 and is just another name for currency outside of banks. B) M1 plus savings ... (Read 36 times)

darbym82

  • Hero Member
  • *****
  • Posts: 570
M2 equals
 
  A) M1 and is just another name for currency outside of banks.
  B) M1 plus savings deposits and small time deposits minus money market fund deposits.
  C) M1 plus savings deposits, small time deposits, and money market fund deposits.
  D) M1 minus traveler's checks because they are not really money.
  E) currency plus savings deposits, all time deposits, and money market funds and other deposits.

Question 2

Based on the model of the money market, when real income decreases, the equilibrium interest rate should
 
  A) stay the same.
  B) increase.
  C) decrease.
  D) increase to the same extent that the supply of money increases.



poopface

  • Sr. Member
  • ****
  • Posts: 339
Answer to Question 1

C

Answer to Question 2

C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

After a vasectomy, it takes about 12 ejaculations to clear out sperm that were already beyond the blocked area.

Did you know?

Women are two-thirds more likely than men to develop irritable bowel syndrome. This may be attributable to hormonal changes related to their menstrual cycles.

Did you know?

The Centers for Disease Control and Prevention (CDC) was originally known as the Communicable Disease Center, which was formed to fight malaria. It was originally headquartered in Atlanta, Georgia, since the Southern states faced the worst threat from malaria.

Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

Did you know?

Approximately 15–25% of recognized pregnancies end in miscarriage. However, many miscarriages often occur before a woman even knows she is pregnant.

For a complete list of videos, visit our video library