Ask Question
30 June, 16:33

Jared read an article that showed a dramatic increase in money market accounts and certificates of deposit in the last quarter. The story reported that all other major components of the U. S. money supply remained unchanged. Based on this information, Jared can conclude that for the past quarter (1) both the M-1 and the M-2 money supplies have increased. (2) the M-2 money supply has increased, but the M-1 money supply was stable. (3) the M-1 money supply has increased, but the M-2 money supply was stable. (4) both the M-1 and M-2 money supplies were stable.

+4
Answers (1)
  1. 30 June, 18:37
    0
    2) the M-2 money supply has increased, but the M-1 money supply was stable.

    Explanation:

    Monet market funds and certificates of deposits are included in the M2 money supply.

    Since all the other major components of the money supply, both M1 and M3, remained unchanged, then only M2 has increased.

    M2 includes M1 + savings accounts, certificates of deposits and money market funds.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Jared read an article that showed a dramatic increase in money market accounts and certificates of deposit in the last quarter. The story ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers