Which of the Following Is Included in M2 but Not

question 79

Multiple Choice

Which of the following is included in M2 but not in M1?

• A)currency
• B)demand deposits
• C)savings deposits
• D)All of the above are included in both M1 and M2.

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Definitions:

Production Possibilities Curves

The production possibilities curve illustrates the maximum potential output combinations of two goods or services that an economy can achieve when all resources are fully and efficiently utilized.

Trading Possibilities Curves

A graphical representation that shows the maximum amounts of goods that two countries can trade with each other, given their resources and technology.

Comparative Advantage

The skill of an entity—be it an individual, enterprise, or nation—to manufacture a product or deliver a service at a reduced opportunity cost than that of its competitors.

Production Possibilities

The various combinations of goods and services that an economy can produce, given its technological capabilities and available resources.