Multiple Choice
Which of the following statements accurately describes the two measures of the money supply?
A) The two measures do not move together, so they cannot be used interchangeably by policymakers.
B) The two measures' movements closely parallel each other, even on a month-to-month basis.
C) Short-run movements in the money supply are extremely reliable.
D) M2 is the narrowest measure the Bank of Canada reports.
Correct Answer:
Verified
Correct Answer:
Verified
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