A Reason That Economists Keep an Eye on Both M2

question 147

Multiple Choice

A reason that economists keep an eye on both M2 and M1 is because

• A) M2 is more accurate than M1.
• B) both fluctuate widely and frequently in total dollar value.
• C) money market accounts are sometimes used like checking accounts and sometimes like savings accounts.
• D) during a recession, M1 is meaningless.

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Definitions:

Property Rights

Property rights are legal rights to use, control, and dispose of property, whether it's tangible, like real estate, or intangible, like intellectual property.

Habitat

Refers to the natural environment or surroundings where a particular species lives and grows.

Monopolist

An entity that is the sole provider of a particular good or service in the market, facing no competition.