Which of the Following Statements Accurately Describes the Two Measures

question 24

Multiple Choice

Which of the following statements accurately describes the two measures of the money supply?

• A)The two measures do not move together,so they cannot be used interchangeably by policymakers.
• B)The two measures' movements closely parallel each other,even on a month-to-month basis.
• C)Short-run movements in the money supply are extremely reliable.
• D)M2 is the narrowest measure the Fed reports.

---

Definitions:

Nonconformity

A deviation from a specified standard, requirement, or expectation, typically in the context of products, services, or actions not meeting prescribed criterions.

Revoke Acceptance

In legal terms, it's the act of formally withdrawing acceptance of an offer or agreement, often due to discovering defects or misinformation.

Reasonable Assumption

A premise made on the basis of apparent facts or evidence, considered to be logical or sensible under given conditions.

Hose Couplings

Devices used to connect the ends of hoses together or to a tap or a hose appliance, such as a sprinkler or nozzle.