Going from M0 to M1 and to M2,what Is the Principle

question 11

Multiple Choice

Going from M0 to M1 and to M2,what is the principle?

• A) from household money demand to firm money demand
• B) from illiquid to liquid
• C) from most usable to least usable for transaction purposes
• D) from most usable to least usable as a store of value

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Definitions:

Demand Curve

The demand curve is a graphical representation that displays the relationship between the price of a good or service and the quantity demanded by consumers at varying price levels.

Unitary Elasticity

A situation in which the quantity demanded or supplied of a good changes by the same percentage as the change in price.

Demand Curve

A graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period, typically showing a downward slope.

Elastic Demand

A situation where the demand for a product is sensitive to price changes.