The table below shows the components of M1 and M2 in billions of dollars for the month

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The table below shows the components of M1 and M2 in billions of dollars for the month of December in the years 2000 to 2010 as published in the 2011 Economic Report of the President. Complete the table by calculating M1, M2, currency in circulation as a percentage of M1, and currency in circulation as a percentage of M2.

What trends or patterns about M1, M2, currency in circulation as a percentage of M1, and currency in circulation as a percentage of M2 do you see? What might account for these trends?

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Essentials Of Economics

ISBN: 9781429278508

3rd Edition

Authors: Paul Krugman, Robin Wells, Kathryn Graddy

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