The different measures of the money supply reflect: a) varying degrees of liquidity, and the list...
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The different measures of the money supply reflect: a) varying degrees of liquidity, and the list M1 and M2, ranks the measures from most liquid to least liquid. Ob) the different monetary policy tools used by the Fed, with M1 corresponding to the reserve ratio, M2 to open market operations and M3 to the discount rate Oc) alternative forms money may take, with currency and coins being the largest component of M1 and money market accounts being the smallest component of M1 d) opposing views on the importance of the money supply to the economy, with M1 representing the view that money is the most important and M2 representing the view that money is the lest important. The different measures of the money supply reflect: a) varying degrees of liquidity, and the list M1 and M2, ranks the measures from most liquid to least liquid. Ob) the different monetary policy tools used by the Fed, with M1 corresponding to the reserve ratio, M2 to open market operations and M3 to the discount rate Oc) alternative forms money may take, with currency and coins being the largest component of M1 and money market accounts being the smallest component of M1 d) opposing views on the importance of the money supply to the economy, with M1 representing the view that money is the most important and M2 representing the view that money is the lest important.
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