If Traveler's Checks Were $500 Higher and Saving Deposits Were

question 121

Multiple Choice

If traveler's checks were $500 higher and saving deposits were $1,000 higher, M1 would be

• A)$500 higher and M2 would be $1,000 higher
• B)$500 higher and M2 would be $1,500 higher
• C)M2 and M1 would be $1,500 higher
• D)None of the above are correct.

---

Definitions:

Private Good

A good that is both excludable and rival in consumption.

Ice-Cream Cone

A sweet frozen dessert made from dairy and sugar, often served in a cone-shaped pastry or wafer.

Artificially Scarce Good

A good that is excludable but nonrival in consumption.

Pay-Per-View

A type of television or internet broadcasting service by which a user pays to view a specific television program or event.