Suppose that a small country currently has $4 million of currency in circulation, $6 million of checkable

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Suppose that a small country currently has $4 million of currency in circulation, $6 million of checkable deposits,

$200 million of savings deposits, $40 million of small-denominated time deposits, and $30 million of money market mutual fund deposits. From these numbers we see that this small country’s M1 money supply is , while its M2 money supply is .

a. $10 million; $280 million

b. $10 million; $270 million

c. $210 million; $280 million

d. $250 million; $270 million

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Macroeconomics

ISBN: 9781264112456

22nd Edition

Authors: Campbell McConnell, Stanley Brue, Sean Flynn

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Question Posted: Mar 02, 2024 01:00 PM

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Suppose that a small country currently has $4 million of currency in circulation, $6 million of checkable

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ANSWER To calculate the M1 and M2 money supplies we need to understand what each component represent...View the full answer

Macroeconomics

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