The Close Relationship Between M2 and Nominal GDP in the 1960s

question 119

Multiple Choice

The close relationship between M2 and nominal GDP in the 1960s and 1970s vanished from the 1980s through 2015.Which of the following contributed to this breakdown?
I.deregulation of the banking industry
II.introduction of new financial products (not included in M2)
Which allowed people to transfer funds into their checking accounts as and when needed
III.monetary policy lags

• A)I and II only
• B)II only
• C)II and III only
• D)I, II, and III

Examine the role and impact of Salons, encyclopedias, and other institutions in spreading Enlightenment ideas.

Analyze the influence of Enlightenment thought on government, religious institutions, and social reforms.

Understand the relationship between Enlightenment ideas and the development of modern disciplines such as political science and economics.

Discuss the Enlightenment's contribution to debates on natural rights, freedoms, and the social contract.

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Definitions:

Foreign Competition

The competitive pressure that domestic companies face from products and services offered by foreign entities in the same market.

Branch Plants

Secondary factories or operations set up by a company away from its main premises, often in different geographical locations.

Short Run

A period during which at least one factor of production is fixed, limiting the ability to adjust to changes in market demand.

Barriers to Entry

Barriers that impede or block new entrants from smoothly accessing a market or business sector.