Your Savings Account Balance Would Be Counted in Which Measure

question 120

Multiple Choice

Your savings account balance would be counted in which measure of money?

• A) M1
• B) M2
• C) The monetary base
• D) Both M1 and M2

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Definitions:

Marginal Product

The extra production achievable by incorporating an additional unit of a particular input, assuming all other variables remain constant.

Average Product

The output per unit of input, calculated by dividing total output by total input.

Diminishing Marginal Returns

Diminishing Marginal Returns is an economic principle stating that as additional units of a factor of production are added to a fixed amount of other factors, the incremental increase in output will eventually decrease.

Marginal Product

The additional output that results from using one more unit of a specific input, keeping other inputs constant.