How Are Credit Card Balances Treated in M1 as Compared

question 121

Multiple Choice

How are credit card balances treated in M1 as compared to M2?

• A)They are included in M1 but not M2.
• B)They are included in M2 but not M1.
• C)They are included in M1 and M2.
• D)They are included in neither M1 nor M2.

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Definitions:

Government Activity

Actions or initiatives undertaken by the state or governmental bodies to govern, regulate, or manage public affairs.

Public Choice Analysis

An economic framework that applies theories and methods traditionally used to analyze market behavior to political decision-making.

Budget Deficits

A situation where a government's expenditures exceed its revenue over a specified period, leading to borrowing or the depletion of reserves.

Budget Surpluses

The situation in which a government's revenues exceed its expenditures during a specific period of time, allowing for savings or debt reduction.