One Difference Between the Assets Included in M1 and Those

question 86

Multiple Choice

One difference between the assets included in M1 and those added to calculate M2 is that items in M1 are

• A) better stores of value than those added to compute M2.
• B) more liquid than those added to compute M2.
• C) less liquid than those added to compute M2.
• D) larger than those added to compute M2.

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Definitions:

Predictors

Variables or factors that are used in statistical models to forecast or estimate another variable of interest.

Best Predictor

A variable or factor that most accurately forecasts or indicates a specific outcome.

Linear Effects

The impact on a dependent variable that is directly proportional to the change in an independent variable.

Coefficient

A constant or numerical value that precedes and multiplies the variable within an algebraic expression.