M1 Includes

question 242

Multiple Choice

M1 includes

• A)currency in circulation,checking account deposits in banks,and holdings of traveler's checks.
• B)currency in circulation,savings account balances,and checking account deposits in banks.
• C)currency in circulation,savings account balances,checking account deposits in banks,and holdings of traveler's checks.
• D)coins,savings account balances,traveler's checks.

---

Definitions:

Wage Rate

The amount of money paid to an employee per unit of time, such as an hour or a week.

Capital

Refers to financial assets or the financial value of assets, such as cash and investments, as well as physical assets like machinery or buildings, used in the production of goods and services.

Fixed Proportions

A production scenario where inputs are used in a constant ratio, regardless of the level of output.

Coefficient of Elasticity

A measure used in economics to quantify how responsive the quantity demanded or supplied of a good is to a change in one of its determinants, such as price.