The European Central Bank (ECB) has increased money supply to combat the financial crisis with the

aim of increasing private investment and consumption. M1 has increased while broader monetary

aggregates (M2 and M3) have increased much less. What do you infer?

The increase in M1 has been too low to have any effect of M2 and M3. The ECB should increase

M1 even more

The economy has behaved as expected as M2 and M3 grow always slower than M1

The banking system is not lending

This is as expected as M1, M2 and M3 move independently from each other, always

Select the correct option