What is the main difference between the M 1 and M 2 definitions of the money supply?

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What is the main difference between the M₁ and M₂ definitions of the money supply? Why does the Federal Reserve use two definitions of the money supply rather than one?

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Economics

ISBN: 9780135957554

8th Edition

Authors: Glenn Hubbard, Anthony Patrick O Brien

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Question Posted: Oct 13, 2023 05:22 AM

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What is the main difference between the M 1 and M 2 definitions of the money supply?

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The M1 and M2 definitions of the money supply represent different measures of liquid assets within an economy Heres the main difference between the tw...View the full answer

Economics

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