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.
2
Q
What is included in M2
A
- Checkable deposits
- Currency
- Savings accounts
- Mutual Funds
- Time deposits certificates < $100,000
- Money market deposit accounts