Which of the Following Statements Is False

question 129

Multiple Choice

Which of the following statements is false?

• A)M1, M2, and M3 include demand deposits and other checkable deposits.
• B)Term repurchase agreements are included in M3, but not in M1 and M2.
• C)U.S.savings bonds are included in M3, but not in M1 and M2.
• D)Travelers' checks are included in M1, M2, and M3.

---

Definitions:

Average Variable Cost

The variable cost per unit of output, obtained by dividing the total variable cost by the total output.

Marginal Cost

The change in total production cost that comes from making or producing one additional unit.

Shut Down

A short-term decision by a firm to cease operations and production when the market price is below its variable costs, to minimize losses.

Economic Loss

A situation where total costs exceed total revenues, leading to a negative economic profit.