The Definition of M2 Includes

question 421

Multiple Choice

The definition of M2 includes
I. M1.
II. money market mutual funds.
III. currency held outside of banks.

• A) I and II only
• B) I and III only
• C) II and III only
• D) I, II, and III

---

Definitions:

Output

The amount of something produced by a person, machine, or industry.

Total Cost

The aggregate of fixed and variable costs of production for a given level of output, encompassing all expenses needed to produce goods or services.

Produce

To create or manufacture goods and services for consumption using labor, materials, and machinery.

Diminishing Returns

Diminishing returns, a concept in economics, occurs when adding an additional factor of production results in a lower increment of output, assuming other factors are constant.