Macroeconomics (7th Edition)
7th Edition
ISBN: 9780134738314
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 14, Problem 14.3RDE
Subpart (a):
To determine
M1 and M2.
Subpart (b):
To determine
M1 and M2.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
What does m1,m2 m3 include in detail ??
By how much has the following US money aggregates grown between January 2018 (i.e. the
month-end amount for Jan. 2018) and September 2022 (i.e. the month-end amount for Sept.
2022)? Tip: You need to download monthly data for both M1 and M2 money aggregates in the
US.
a. US M1 =
b. US M2 =
%
%
why does m2 fall and not remain unchanged? doesn't M2 consist of both M1 and M2? so when M1 rise (due to more cash), savings account (which is under M2) will drop by the same amount as M1 rise, hence overall M2 will remain unchanged?
Chapter 14 Solutions
Macroeconomics (7th Edition)
Ch. 14 - Prob. 14.1.1RQCh. 14 - Prob. 14.1.2RQCh. 14 - Prob. 14.1.3RQCh. 14 - Prob. 14.1.4RQCh. 14 - Prob. 14.1.5PACh. 14 - Prob. 14.1.6PACh. 14 - Prob. 14.1.7PACh. 14 - Prob. 14.1.8PACh. 14 - Prob. 14.1.9PACh. 14 - Prob. 14.2.1RQ
Ch. 14 - Prob. 14.2.2RQCh. 14 - Prob. 14.2.3PACh. 14 - Prob. 14.2.4PACh. 14 - Prob. 14.2.5PACh. 14 - Prob. 14.2.6PACh. 14 - Prob. 14.2.7PACh. 14 - Prob. 14.2.8PACh. 14 - Prob. 14.2.9PACh. 14 - Prob. 14.2.10PACh. 14 - Prob. 14.3.1RQCh. 14 - Prob. 14.3.2RQCh. 14 - Prob. 14.3.3RQCh. 14 - Prob. 14.3.4RQCh. 14 - Prob. 14.3.5PACh. 14 - Prob. 14.3.6PACh. 14 - Prob. 14.3.7PACh. 14 - Prob. 14.3.8PACh. 14 - Prob. 14.3.11PACh. 14 - Prob. 14.3.12PACh. 14 - Prob. 14.4.1RQCh. 14 - Prob. 14.4.2RQCh. 14 - Prob. 14.4.3RQCh. 14 - Prob. 14.4.4RQCh. 14 - Prob. 14.4.5PACh. 14 - Prob. 14.4.6PACh. 14 - Prob. 14.4.7PACh. 14 - Prob. 14.4.8PACh. 14 - Prob. 14.4.9PACh. 14 - Prob. 14.4.10PACh. 14 - Prob. 14.4.11PACh. 14 - Prob. 14.5.1RQCh. 14 - Prob. 14.5.2RQCh. 14 - Prob. 14.5.3RQCh. 14 - Prob. 14.5.4PACh. 14 - Prob. 14.5.5PACh. 14 - Prob. 14.5.6PACh. 14 - Prob. 14.5.7PACh. 14 - Prob. 14.5.8PACh. 14 - Prob. 14.5.9PACh. 14 - Prob. 14.5.10PACh. 14 - Prob. 14.1RDECh. 14 - Prob. 14.2RDECh. 14 - Prob. 14.3RDECh. 14 - Prob. 14.4RDECh. 14 - Prob. 14.5RDECh. 14 - Prob. 14.6RDE
Knowledge Booster
Similar questions
- You sell $10,000 of money market mutual fund shares and deposit them in a checking account with a bank. What is the effect on M1 and M2?arrow_forwardDetermine whether each of the following is included in both M1 and M2 or M2 only: a. a Connecticut quarter b. a savings account at a local savings bank c. a share draft account at a credit union d. money market deposit accounts e. American Express travelers’ checksarrow_forwardUse the following table on the components of money in a hypothetical economy to do exercises 11 and 12. Money Component Amount $ 100 $ 2,500 $ 2,500 $ 6,000 $ 5,000 $ 9,000 $7,500 Traveler's checks Currency Small-denomination time deposits Savings deposits Demand deposits Other checkable deposits Retail money market mutual fundsarrow_forward
- If traveler’s checks were $500 higher and saving deposits were $1,000 higher, M1 would be?arrow_forwardFRONT PAGE ECONOMICS The FTX Collapse In a mere 10 days, $32 billion vanished into thin air. That was the market value on November 8, 2022, of the cryptocurrency exchange company called FTX. FTX had an exchange platform that handled customer purchases and sales of cryptocurrencies, including its own FTT. Like Bitcoin, FTT was a cryptocurrency that could be used to transfer money, make purchases, or be held as wealth. Or so people thought. In reality, a lot of money deposited into FTX customer accounts was being diverted into the personal accounts of the company's owner and key associates. When customers wanted to withdraw their deposits, the cupboard was bare. On November 11, 2022, FTX filed for bankruptcy. The price of an FTT token fell from $24 on November 8 to $1.27 on November 23. Thousands of FTX customers and investors lost millions of dollars, including celebrities like Tom Brady, Steph Curry, and Naomi Osaka. The University of California football team and the Miami Heat also…arrow_forwardJohn deposits $1,600 into his checking account. If the reserve ratio is 5%, what are the required and excess reserves? Required reserves: $ Excess reserves: $arrow_forward
- What is Money? What makes it useful? Explain its primary and derivative functions of Money? explain elaborately?arrow_forwardMira deposited $10,000 in a saving account at “B" bank on September 2018. On November 2018 she withdrew the whole amount and deposited $9,000 in a checking account at "S" bank and kept $1,000 in her wallet. Determine M1 and M2 on November 2018. * M1= $10,000; M2= $10,000 M1= 1,000; M2=0 M1= 9,000; M2=9,000 M1=10,000; M2= 0 If excess reserves are $40,000, demand deposits are $1,000,000, and the required reserve ratio is 10%, then actual reserve are: $40,000 O $100,000 $140,000 $200,000arrow_forwardDespite the emerging trends on the use of cryptocurrency, economics research so far has provided little insight into the economic relevance of cryptocurrencies. According to your knowledge on money, discuss how well a cryptocurrency can serve as a means of payment.arrow_forward
- Real-Time Data Analysis Exercise* Two Measures of Money: November 2020 andNovember 2021 *Real-time data provided by Federal Reserve Economic Data (FRED), Federal Reserve Bank of Saint Louis. Amount (billions of dollars) November 2020 November 2021 The table shows the quantities of M1, M2, and their components in November 2020 and November 2021. M2 18,958.7 21,436.7 Retail money market funds 1,088.8 280.9 997.9 Small time deposits 93.8 17,589.1 2,788.0 M1 20,345.0 In the year to November 2021, M1 grew by percent and M2 grew by percent. Demand deposits Other liquid deposits Currency 4,764.1 >>> Answer to the nearest 1 decimal place. 12,844.2 1,956.8 13,466.3 2,114.6arrow_forwardQuestion The table below shows the components of M1 and M2 in the U.S. Use the table to calculate Total M1. Round to the nearest third decimal place. Provide your answer below: trillion Components of M1 and M2 in the U.S. Currency Traveler's checks Demand deposits and other checking accounts Savings accounts Time deposits Individual money market mutual fund balances $ trillions $1.2 $0.004 $2.204 $9.805 $0.527 $1.176arrow_forwardWhat is M1, M2 and M3arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning