Which of the Following Describes the Behavior of M1 in Recent

question 53

Multiple Choice

Which of the following describes the behavior of M1 in recent decades?

• A)it soared during the recessions of 1990-91, 2001, and 2007-2009
• B)it tended to grow more rapidly than M2
• C)it was more stable than M2
• D)it has not declined since the 1970s

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Definitions:

Expense

Money spent or cost incurred in an entity's efforts to generate revenue.

Asset

Resources owned by a business or individual that have economic value or future benefit.

Liability Account

A liability account records the obligations or debts a company owes to others, such as loans, accounts payable, and mortgages.

Asset Account

An account on a company's balance sheet that represents a resource with economic value owned or controlled with the expectation that it will provide future benefit.