Macro/Micro Flashcards

1
Q

What is the Multiplier Effect

A

Any increase in autonomous investment, consumption, or spending that results in an increase in national income
- The original investment is spent several times.

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2
Q

What is included in M2

A
  1. Checkable deposits
  2. Currency
  3. Savings accounts
  4. Mutual Funds
  5. Time deposits certificates < $100,000
  6. Money market deposit accounts
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