Comparing the two measures, M1 is:
AAbove M2
BBeyond M2
CInside M2
DOutside M2
Answer & Solution
Correct answer: C. Inside M2
1. M2 adds items on top of M1.
2. Nothing in M1 is dropped.
3. So M1 sits inside M2.
_Source: OpenStax Principles of Macroeconomics 3e, Chapter 14, Money and Banking._
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