Macroeconomics
Which of the following is an additional component included in the M2 money supply?
What is the primary significance of the money supply in an economy?
Why is M1 prioritized over M2 in the context of this course?
Analyze the implications of using M1 versus M2 for short-term economic policy decisions.
Synthesize the reasons for prioritizing M1 over M2 in this course's context.
If M1 is \$2.6 trillion and M2 is \$11 trillion, approximately how many times larger is M2 than M1?
Which scenario would lead to an increase in the M2 money supply?
If M1 is \$3 trillion and M2 is \$12 trillion, approximately how many times larger is M2 than M1?
Why is it important to understand both M1 and M2 definitions?
Evaluate the rationale for excluding savings accounts from M1 in terms of liquidity and spending.
