POLICY PERSPECTIVES From the end of 2003 to the end of 2004, M1 changed from $1,388 billion to $1,383 billion. Instructions: Round your responses to one decimal place. If M1 decreased be sure to include a negative sign (-) in front of th number. a. By what percentage did M1 change? % b. If the Fed had used a fixed rule of 3 percent growth of the money supply (M1), how large would M1 have been in 2004? $ billion

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