Economics (7th Edition) (What's New in Economics)
7th Edition
ISBN: 9780134738321
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Question
Chapter 25, Problem 25.3RDE
Subpart (a):
To determine
M1 and M2.
Subpart (b):
To determine
M1 and M2.
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Students have asked these similar questions
What is the difference between M1 and M2? Why aren’t M1 and M2 just combined?
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?
The table below shows the components of M1 and M2 in the U.S. Use the table to calculate Total
M2. Round to the third decimal place.
Components of M1 and M2 in the U.S.
$ trillions
Currency
$3
Individual market mutual fund balances
$0.764
Demand deposits and other checking accounts
$3.1
Savings accounts
$8.475
Traveler's checks
$0.004
Time deposits
$0.492
Chapter 25 Solutions
Economics (7th Edition) (What's New in Economics)
Ch. 25 - Prob. 25.1.1RQCh. 25 - Prob. 25.1.2RQCh. 25 - Prob. 25.1.3RQCh. 25 - Prob. 25.1.4RQCh. 25 - Prob. 25.1.5PACh. 25 - Prob. 25.1.6PACh. 25 - Prob. 25.1.7PACh. 25 - Prob. 25.1.8PACh. 25 - Prob. 25.1.9PACh. 25 - Prob. 25.2.1RQ
Ch. 25 - Prob. 25.2.2RQCh. 25 - Prob. 25.2.3PACh. 25 - Prob. 25.2.4PACh. 25 - Prob. 25.2.5PACh. 25 - Prob. 25.2.6PACh. 25 - Prob. 25.2.7PACh. 25 - Prob. 25.2.8PACh. 25 - Prob. 25.2.9PACh. 25 - Prob. 25.2.10PACh. 25 - Prob. 25.3.1RQCh. 25 - Prob. 25.3.2RQCh. 25 - Prob. 25.3.3RQCh. 25 - Prob. 25.3.4RQCh. 25 - Prob. 25.3.5PACh. 25 - Prob. 25.3.6PACh. 25 - Prob. 25.3.7PACh. 25 - Prob. 25.3.8PACh. 25 - Prob. 25.3.11PACh. 25 - Prob. 25.3.12PACh. 25 - Prob. 25.4.1RQCh. 25 - Prob. 25.4.2RQCh. 25 - Prob. 25.4.3RQCh. 25 - Prob. 25.4.4RQCh. 25 - Prob. 25.4.5PACh. 25 - Prob. 25.4.6PACh. 25 - Prob. 25.4.7PACh. 25 - Prob. 25.4.8PACh. 25 - Prob. 25.4.9PACh. 25 - Prob. 25.4.10PACh. 25 - Prob. 25.4.11PACh. 25 - Prob. 25.5.1RQCh. 25 - Prob. 25.5.2RQCh. 25 - Prob. 25.5.3RQCh. 25 - Prob. 25.5.4PACh. 25 - Prob. 25.5.5PACh. 25 - Prob. 25.5.6PACh. 25 - Prob. 25.5.7PACh. 25 - Prob. 25.5.8PACh. 25 - Prob. 25.5.9PACh. 25 - Prob. 25.5.10PACh. 25 - Prob. 25.1RDECh. 25 - Prob. 25.2RDECh. 25 - Prob. 25.3RDECh. 25 - Prob. 25.4RDECh. 25 - Prob. 25.5RDECh. 25 - Prob. 25.6RDE
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Similar questions
- Explain what would happen if banks were notified they had to increase their required reserves by one percentage point from, say, 9 to 10 of deposits. What would their options be to come up with the cash?arrow_forwardIf you are out shopping for clothes and books, what is easiest and most convenient for you to spend: M1 or M2? Explain your answer.arrow_forwardIf you take 100 out of your piggy bank and deposit it in your checking account, how did M1 change? Did M2 change?arrow_forward
- Can I ask how do you calculate M1 and M2 ? Thanksarrow_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 does m1,m2 m3 include in detail ??arrow_forward
- Consider the following bank. Cash in Vaults=$25 Its deposits at Central Bank-$275 Loans it has made to customers=$1600 Value of government bonds it owns=$100 Deposits made by its customers=$2000 What are the bank's reserves (in dollars)? (Round to two decimal places and do not enter the currency symbol. If your answer is $6.114, enter 6.11. If your answer is $6.115, enter 6.12. If appropriate, remember to enter the - sign.)arrow_forwardThe Federal Reserve System is responsible for tracking the amounts of M1 and M2 and prepares a weekly release of information about the money supply. The table below shows the U.S. money stock components of M1 and M2. Use the table to calculate total M1. Round to the third decimal place. Provide your answer below: trillion Components of M1 and M2 in the U.S. Currency Individual market mutual fund balances Demand deposits and other checking accounts Savings accounts Traveler's checks Time deposits $ trillions $2.000 $0.732 $3.200 $8.493 $0.003 $0.460arrow_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
- 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_forwardDoes m2 , m1 or m3 include current deposit at bank ??arrow_forwardGive three specific examples each of M1, M2, and M3. For instance, under M1 is coins and currency in circulation and one specific example of currency is American dollar.arrow_forward
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