Which of the Following Makes Up the Largest Share of M2

question 49

Multiple Choice

Which of the following makes up the largest share of M2?

• A) M1
• B) savings deposits
• C) small time deposits
• D) money market mutual fund shares

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Definitions:

Inelastic

Describing demand that does not significantly change with the price changes of a good or service.

Income Elasticities

Refers to the sensitivity of the demand for a good to changes in the income of the consumers who buy this good.

Normal Goods

Products that see an increase in demand when consumer income grows, and experience a drop in demand as consumer income declines.

Wheat Yields

The quantity of wheat produced per unit of land area.