The table below shows hypothetical values, in billions of dollars, of different forms of money. a. Use
Question:
The table below shows hypothetical values, in billions of dollars, of different forms of money.
a. Use the table to calculate the M1 and M2 money supplies for each year, as well as the growth rates of the M1 and M2 money supplies from the previous year.
b. Why are the growth rates of M1 and M2 so different? Explain.
Transcribed Image Text:
2015 900 680 2016 2017 925 679 5,968 1,274 201 93 68 6,10 1,32 99 1,56 Currency A. 920 B. Money market mutual fund shares 681 Saving account deposits 5,500 1,214 1,000 830 5,780 1,245 C. Money market deposit accounts D. E. Demand and checkable deposits 972 861 980 1,123 Small denomination time F. G. Traveler's checks H. deposits 3-monthtreasurybills 1,986 2,374 2,436 2,50
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The M1 money supply is the sum of rows A E and G for each year The M2 money supply is the sum of all ...View the full answer
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Related Book For
The Economics of Money Banking and Financial Markets
ISBN: 978-0133836790
11th edition
Authors: Frederic S. Mishkin
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