Economists who stress the store of value function of money generally
A) argue that M1 is the best measure of the money supply.
B) prefer the M2 measure of the money supply to the M1 measure.
C) argue that M1 is too broad a definition of the money supply.
D) prefer the M1 measure of the money supply to the M2 measure.

Question

Quizplus · Accepted Answer

Economists who emphasize the store of value function of money prefer M2 because it includes savings accounts and other time deposits, which are better at storing value than the more liquid components of M1.

Economists Who Stress the Store of Value Function of Money