What Is the Difference Between the M1 and M2 Definitions

question 49

Essay

What is the difference between the M1 and M2 definitions of the money supply?

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Definitions:

Reinforcement

In behaviorist psychology, it refers to any stimulus that strengthens or increases the probability of a specific response or behavior by delivering a reward or removing an unpleasant stimulus.

Variable-Ratio Schedule

In operant conditioning, a reinforcement schedule where responses are rewarded after an unpredictable number of responses, leading to high and steady response rates.

Piece-Rate Pay

A compensation system where workers are paid a fixed rate for each unit of production completed, motivating higher productivity.

Weekly Pay

Compensation or salary distributed on a weekly basis to employees or workers.