Recently, M1 has become:
A)A more useful measure of the relationship between the money supply and inflation because it includes the most liquid assets
B)The money supply the Federal Reserve pays the most attention to in conducting monetary policy
C)Less useful than M2 for understanding inflation
D)The fastest growing of all of the money aggregates

Question

Quizplus · Accepted Answer

M1 has become less useful than M2 for understanding inflation because M2 includes a broader range of financial assets, providing a more comprehensive view of the money supply's impact on inflation.

Recently, M1 Has Become