ECON MACRO
5th Edition
ISBN: 9781337000529
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 14, Problem 1.2P
To determine
To calculate:
The value of M1 and M2 using the given information.
Concept Introduction:
Money supply in the economy is measured through money aggregates. Apart from the currency notes and coins, there are many ways in which the money supply takes places in the economy. They form a part of the narrow definition of money, M1, and the other part is the broader definition of money supply, M2.
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The currency notes in circulation as well as the proportion of the total money supply held in the form of currency are influenced by which of the following? [S1] The trade volume in the economy [S2] The level of prices in the economy [S3] The development of banks and banking habits of the people
A.) Statements 1 and 2 only
B.) Statements 2 and 3 only
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Kk.251.
Answer the questions below based on the data in the following table. (All figures are in $billions.) Coins $13 Deposits at near banks 137 Demand deposits 72 Canada Savings Bonds and non-money market mutual funds 60 Notice and personal term deposits 115 Notes 27 (a) What is the value of M2? Please enter only numeric value in the answer, for example if the answer to question a) is 28.92 billion dollars, then ENTER $29 in the Answer.
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