M2 Includes M1 Plus

question 130

Multiple Choice

M2 includes M1 plus

• A)currency in circulation,checking account deposits in banks,and holdings of traveler's checks.
• B)savings account balances,money market deposit accounts in banks,small-denomination time deposits,and noninstitutional money market fund shares.
• C)checking account deposits,large-denomination time deposits,and noninstitutional money market fund shares.
• D)currency in circulation,savings account balances,and small-denomination time deposits.

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Definitions:

Profit-maximizing

The process or strategy implemented by firms to determine the price and output level that returns the highest profit.

Weak Axiom

Often associated with the Weak Axiom of Revealed Preference (WARP), which is a condition used in consumer choice theory to describe consistent consumer behavior.

Profit Maximization

The strategy of adjusting production and sales to achieve the maximum possible profits.

Input Increases

A situation where the amount, quality, or number of resources used in production grows, potentially leading to an increase in output.