Why Are Savings Accounts Not Considered a Component of M-1,whereas

question 71

Essay

Why are savings accounts not considered a component of M-1,whereas checking accounts are?

---

Definitions:

Excess Capacity

The situation in which a firm produces less than its potential output, often indicated by idle resources or facilities.

Potential Entrant

Refers to a business or company that is not currently in a market but has the capability and interest to enter the market if certain conditions are met.

Dominant Strategy

A strategy in game theory that yields the best outcome for a player regardless of what strategies other players choose.

Nash Equilibria

A situation in a non-cooperative game where no player can benefit by changing strategies, assuming the other players also don't change their strategies.