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:

Contingencies

Situations or conditions that are dependent on other events which may or may not happen, often influencing decision-making and planning.

Labour Market

The supply of available workers in relation to available work.

Job Satisfaction

Job satisfaction is the level of contentment employees feel towards their work, which impacts their performance and well-being.

Turnover

The rate at which personnel vacate their positions within a company and are succeeded by new recruits.