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Which of the Following Statements Most Accurately Describes the Measurements

Question 11

Multiple Choice

Which of the following statements most accurately describes the measurements of the money supply known as M1 and M2?

A) M1 was a measure of the money supply that worked until about the 1990s; then M2 became a more accurate measure and is still in use today.
B) M1 was a measure of the money supply that worked well until the Great Depression, M2 was used until the 1990s, and M3 is considered accurate today.
C) Neither M1 nor M2 worked very well after the 1970s.
D) M1 was a measure of the money supply that worked well until the mid-1970s; then M2 became a more accurate measure until the 1990s.

Correct Answer: