Is it accurate to say that M2 is a more important monetary aggregate than the monetary base

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Is it accurate to say that M2 is a more important monetary aggregate than the monetary base because people can spend M2 but cannot spend all the assets in the monetary base? Explain.

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Managing in a Global Economy Demystifying International Macroeconomics

ISBN: 978-1285055428

2nd edition

Authors: John E. Marthinsen

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Question Posted: Mar 09, 2016 06:45 AM

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Is it accurate to say that M2 is a more important monetary aggregate than the monetary base

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No Not all the financial assets in M2 can be spent eg savings accounts and time deposits ...View the full answer

Managing in a Global Economy Demystifying International Macroeconomics

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