Use the Following to Answer Questions

question 93

Multiple Choice

Use the following to answer questions.
Exhibit: Money in the Economy

-(Exhibit: Money in the Economy) In Year 2, the supply of money measured by M1 was

• A) $300 billion.
• B) $550 billion.
• C) $750 billion.
• D) $900 billion.

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Definitions:

Product Market

The marketplace in which final goods or services are offered for purchase by consumers, businesses, and the public sector.

Cell Phones

Portable electronic devices used for communication over long distances without a physical connection.

Circular-Flow Diagram

A visual framework that demonstrates the pathways through which money travels among marketplaces, connecting businesses to households.

Firm

An organization that produces goods and services for sale.