An Economist Notices That M1 Is Rapidly Rising

question 281

Multiple Choice

An economist notices that M1 is rapidly rising. One conclusion she might draw is that

• A) depositors want to save for the long term.
• B) interest rates on savings accounts are rising.
• C) consumers are preparing to make more purchases.
• D) banks are discouraging their customers from borrowing and spending.

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Definitions:

Technology

The application of scientific knowledge for practical purposes, especially in industry and the creation of gadgets, equipment, and software.

Business Objectives

Specific and measurable goals set by a business as part of its planning process, aimed at achieving its overall mission.

Cost Effective

A term describing an action or method that provides good value or outcome for the resources invested.

Key Decision Makers

Individuals or groups who have the authority to make critical decisions within an organization or project.