Final answer:
By investing in money market funds, you contribute to the M2 money supply category, which includes various types of less liquid yet accessible deposits, including money market funds.
Step-by-step explanation:
If you invest in money market funds, you would be contributing to the M2 money supply. The M2 classification includes not only all of the components of the M1 money supply, which are cash, checkable (demand) deposits, and now savings accounts, but it also encompasses additional types of deposits. Specifically, M2 adds time deposits, certificates of deposit (CDs), and money market funds.
M2 is essentially a broader measure of the money supply than M1 because it accounts for assets that are less liquid than those in M1, but still fairly accessible. Money market funds are pooled investments that are invested primarily in short-term government bonds or other relatively safe securities. These funds can be easily converted into cash, although it may require more effort than accessing funds from M1 categories.