During the fourth quarter of 2008, the Fed doubled the monetary base but the quantity of money

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During the fourth quarter of 2008, the Fed doubled the monetary base but the quantity of money (M2) increased by only 5 percent.

Why did M2 not increase by much more than 5 percent? What would have happened to the quantity of M2 if the Fed had kept the monetary base constant?

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Foundations Of Economics

ISBN: 9780134486819

8th Edition

Authors: Robin Bade, Michael Parkin

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Question Posted: Dec 23, 2023 06:42 AM

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During the fourth quarter of 2008, the Fed doubled the monetary base but the quantity of money

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Foundations Of Economics

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