Macroeconomics
21st Edition
ISBN: 9781259915673
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 14, Problem 1P
Sub part (a):
To determine
The M1 measure of money supply.
Sub part (b):
To determine
The M2 measure of money supply.
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Assume that the following asset values (in millions of dollars) exist in Ironmania: Federal Reserve Notes in circulation = $700; Money market mutual funds (MMMFs) held by individuals = $400; Corporate bonds = $300; Iron ore deposits = $50; Currency in commercial banks = $100; Savings deposits, including money market deposit accounts (MMDAs) = $140; Checkable deposits = $1500; Small-denominated (less than $100,000) time deposits = $100; Coins in circulation = $40.
Recall, M1 equals Federal Reserve Notes in circulation plus checkable deposits plus Coins in circulation. M2 equals M1 plus Savings deposits, including Money market deposit accounts (MMDAs) plus Small-denominated (less than $100,000) time deposits plus Money Market Mutual Funds (MMMFs) held by individuals.
1.1 What is M1 in Ironmania?
1.2. What is M2 in Ironmania?
Assume that the following asset values (in millions of dollars) exist in Ironmania: Federal Reserve Notes in circulation = $700; Money market mutual funds (MMMFs) held by individuals = $400; Corporate bonds = $300; Iron ore deposits = $50; Currency in commercial banks = $100; Savings deposits, including money market deposit accounts (MMDAs) = $140; Checkable deposits = $1500; Small-denominated (less than $100,000) time deposits = $100; Coins in circulation = $40.
Recall, M1 equals Federal Reserve Notes in circulation plus checkable deposits plus Coins in circulation. M2 equals M1 plus Savings deposits, including Money market deposit accounts (MMDAs) plus Small-denominated (less than $100,000) time deposits plus Money Market Mutual Funds (MMMFs) held by individuals.
1.1. What is M1 in Ironmania? Show your computation.
1.2. What is M2 in Ironmania? Show your computation.
Assume that the following asset values (in millions of dollars) exist in Ironmania: Federal Reserve Notes in circulation = $700; Money market mutual funds (MMMFs) held by individuals = $400; Corporate bonds = $300; Iron ore deposits = $50; Currency in commercial banks = $100; Savings deposits, including money market deposit accounts (MMDAs) = $140; Checkable deposits = $1500; Small-denominated (less than $100,000) time deposits = $100; Coins in circulation = $40.
Hints: Recall, M1 equals Federal Reserve Notes in circulation plus checkable deposits plus Coins in circulation. M2 equals M1 plus Savings deposits, including Money market deposit accounts (MMDAs) plus Small-denominated (less than $100,000) time deposits plus Money Market Mutual Funds (MMMFs) held by individuals.
Part 1:What is M1 in Ironmania?
Part 2: What is M2 in Ironmania?
Chapter 14 Solutions
Macroeconomics
Ch. 14 - Prob. 1DQCh. 14 - Prob. 2DQCh. 14 - Prob. 3DQCh. 14 - Prob. 4DQCh. 14 - Prob. 5DQCh. 14 - Prob. 6DQCh. 14 - Prob. 7DQCh. 14 - Prob. 8DQCh. 14 - Prob. 9DQCh. 14 - Prob. 10DQ
Ch. 14 - Prob. 11DQCh. 14 - Prob. 12DQCh. 14 - Prob. 13DQCh. 14 - Prob. 14DQCh. 14 - The three functions of money are: LO14.1 a....Ch. 14 - Prob. 2RQCh. 14 - Prob. 3RQCh. 14 - Prob. 4RQCh. 14 - Prob. 5RQCh. 14 - Prob. 6RQCh. 14 - Prob. 7RQCh. 14 - Prob. 8RQCh. 14 - Prob. 9RQCh. 14 - Prob. 1PCh. 14 - Prob. 2PCh. 14 - Prob. 3PCh. 14 - Prob. 4PCh. 14 - Prob. 5P
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