Other Things Constant, Which of the Following Would Cause the M2

question 188

Multiple Choice

Other things constant, which of the following would cause the M2 money supply to decline?

• A) an increase in the quantity of U.S. currency held overseas
• B) a shift of funds from interest-earning checking accounts to money market mutual funds
• C) a reduction in the general public's holdings of currency outside of banks because debit cards have become more popular and widely accepted
• D) a shift of funds from money market mutual funds into stock and bond mutual funds because the fees to invest in the latter have declined

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Definitions:

Mesostructures

Intermediate-scale structures or frameworks that exist between the macro and micro levels, such as community organizations or networks.

Microstructures

The small-scale, intricate social, physical, or biological arrangements and patterns that make up a larger system or society.

Sociological Imagination

The ability to see the relationship between individual experiences and larger social influences.

Scientific Revolution

The period of significant advancements in science during the 16th and 17th centuries, which transformed views on society and nature.