A Reason That Economists Keep an Eye on Both M2

question 147

Multiple Choice

A reason that economists keep an eye on both M2 and M1 is because

• A) M2 is more accurate than M1.
• B) both fluctuate widely and frequently in total dollar value.
• C) money market accounts are sometimes used like checking accounts and sometimes like savings accounts.
• D) during a recession, M1 is meaningless.

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Definitions:

Polysaccharides

Large, complex carbohydrates composed of long chains of monosaccharide units, serving roles in energy storage and structural support.

Disaccharides

Carbohydrates composed of two monosaccharides bonded together, examples include sucrose and lactose.

Digestion

The biological process by which the body breaks down food into smaller components that can be absorbed into the bloodstream for use by the body.

Large Intestine

The final section of the digestive system, responsible for water absorption and formation of feces.