Which measure of money would we most likely use if we were interested in looking at saving in the economy?
A) Hard money
B) M1
C) M2
D) Reserves

Question

Quizplus · Accepted Answer

M2 includes M1 (which is cash and demand deposits) and adds other types of deposits, such as savings accounts and small time deposits. Therefore, if we were interested in looking at saving in the economy, M2 would be the best measure of money to use.

Which Measure of Money Would We Most Likely Use If