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Someone Arguing That M2 Is a Better Definition of the Money

Question 50

Multiple Choice

Someone arguing that M2 is a better definition of the money supply than M1 might state that:


A) M2 includes money market and other accounts that are readily available to spend.
B) M2 is more comprehensive than M1 because it includes all money and real assets of households and businesses.
C) M2 gives a better measure of real GDP since it does not include demand deposits and other checkable deposits.
D) M1 includes only accounts at commercial banks, whereas M2 includes accounts at savings associations and credit unions.

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