The Distinction Between M1 and M2 Has Blurred Over Time

question 106

Multiple Choice

The distinction between M1 and M2 has blurred over time because

• A)M1 is now larger than M2
• B)depositors can transfer funds between accounts so easily
• C)the Federal Reserve has defined them less precisely
• D)M1 is becoming less liquid
• E)banks are offering time deposits

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