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Why Are the Following Included in the Broader Definition of Supply

question 131

Essay

Why are the following included in the broader definition of supply known as M2?
(a) money market deposit accounts
(b) money market mutual funds
(c) savings accounts


Definitions:

Advertising Budget

The amount of money a business is willing to spend on its advertising efforts over a certain period.

Equilibrium

The state in which market supply and demand balance each other, resulting in stable prices.

Coconuts

Tropical fruits with a hard shell, edible flesh, and a clear liquid inside, often used in food and beverages.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, achieving market balance.

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