Which One of the Following Is Included in M2 but NOT

question 333

Multiple Choice

Which one of the following is included in M2 but NOT in M1?

• A) coins and currency
• B) transaction deposits
• C) a savings deposit
• D) large-denomination time deposits

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Definitions:

Economic Profits

Economic profits are the financial gains that exceed the total costs of production, including both explicit and opportunity costs, indicating an above-normal return.

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced; it decreases as production increases.

Short Run

A time period in economics during which at least one input, such as plant size, is fixed and cannot be changed.

Competitive Firm

A company that operates in a market with many sellers, where it has little to no control over the price of its product.