M1 has decreased in its usefulness in understanding inflation due to:
A)The increased use of checks in the economy
B)The introduction of money market mutual fund shares and similar checking substitutes
C)More reliance on the use of currency
D)The increased use of electronic payments

Question

Quizplus · Accepted Answer

The introduction of money market mutual fund shares and similar checking substitutes has made M1 less useful for understanding inflation, as these substitutes are not included in M1 but affect the money supply and spending.

M1 Has Decreased in Its Usefulness in Understanding Inflation Due