Question: Is it accurate to say that M2 is a more important monetary aggregate than the monetary base because people can spend M2 but cannot spend

Is it accurate to say that M2 is a more important monetary aggregate than the monetary base because people can spend M2 but cannot spend all the assets in the monetary base? Explain.

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No Not all the financial assets in M2 can be spent eg savings accounts and time deposits ... View full answer

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