Which of the Following Statements Accurately Describes the Two Measures

question 24

Multiple Choice

Which of the following statements accurately describes the two measures of the money supply?

• A)The two measures do not move together,so they cannot be used interchangeably by policymakers.
• B)The two measures' movements closely parallel each other,even on a month-to-month basis.
• C)Short-run movements in the money supply are extremely reliable.
• D)M2 is the narrowest measure the Fed reports.

---

Definitions:

Jean-Paul Sartre

A French existentialist philosopher, playwright, and novelist known for his exploration of freedom, existentialism, and the absurd.

Erich Fromm

A German social psychologist, psychoanalyst, sociologist, and humanistic philosopher known for his theories on the tethers of freedom.

Escape From Freedom

A concept referring to the evasion of personal responsibility that leads individuals to seek refuge in authoritarian systems.

Determinism

Determinism is the philosophical theory that all events, including moral choices, are completely determined by previously existing causes.