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M2 includes everything in M1 but also adds other types of:
ABank deposits
BTax receipts
CExport sales
DWage bills
Answer & Solution
Correct answer: A. Bank deposits
1. The difference between the two measures is one category.
2. M1 is the narrower measure of the money supply.
3. A broader definition of money, M2, includes everything in M1.
4. It also adds other types of deposits.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 13 'Money and Banking'_
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