M1 = 1,000 Small denomination time deposits = 1,500 Savings deposit = 1,800 Money market mutual funds = 300 Large denomination time deposits = 800 If M3 is 5,000, small denomination time deposits are 700, and large denomination time deposits are 900, how much is M2?
What will be an ideal response?
M2 = 5,000 - 900 = 4,100
You might also like to view...
The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
Monetarists differ from traditional classical theorists in their belief that
a. velocity is not constant b. the only motive for demanding money is the transactions demand c. investment is very sensitive to changes in the interest rate d. the economy operates at full-employment e. increases in the money supply do not lead to changes in real GDP
The real wealth effect provides a partial explanation for why the aggregate demand curve slopes downward. Which of the following statements best explains the real wealth effect?
A. At a lower price level domestically produced items are relatively less expensive than foreign goods and therefore are in greater demand. B. At a lower price level the real interest rate tends to be lower, and thus the quantity of investment goods demanded is larger. C. At a lower price level consumers will buy less because of a reduction in the real money supply. D. At a lower price level the purchasing power of accumulated savings is larger, and thus consumers will purchase more goods.
The data suggest that wages increase more with age for the highly educated compared to the less educated. This is evidence that
A. highly educated people also invest more in postschooling human capital compared to the less educated. B. the return to education is low for all education levels. C. the return to education is constant with respect to age. D. less educated workers invest on-the-job training more so than do the highly educated. E. on-the-job training is unrelated to the level of formal schooling.