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Why does economists make a distinction between M1 and m2

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User Helpful
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1 Answer

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Answer:

The main difference is that M1 is a more limited and more liquid type of money. More types of money are included in M2, but they are less liquid than those included in M1. Different kinds of money can be more or less liquid. This means that they can be more or less usable for buying goods and services.

Step-by-step explanation:

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User Jeff Lockhart
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