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.

---

Definitions:

Spanish Explorers

Conquistadors and adventurers from Spain who traveled to the New World in the 15th and 16th centuries, leading to the Spanish colonization of the Americas.

Conquistadors

Conquistadors were the Spanish soldiers, explorers, and fortune hunters who took part in the conquest of the Americas in the 16th century, leading to the extensive territorial expansions of Spain.

Missionaries

Individuals sent on a religious mission, often to promote their faith in foreign countries.

Schemas

Cognitive structures that help individuals organize and interpret information, based on prior knowledge and experiences.