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

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The following table shows the components of M1 and M2 in billions of dollars for the month of December in the years 2006 to 2016 reported by the Federal Reserve Bank of St. Louis. Complete the table by calculating M1, M2, currency in circulation as a percentage of Mi, and currency in circulation as a percentage of ‘M2. What trends or patterns about M1, M2, currency in circulation as a percentage of Mi, and currency in circulation as a percentage of M2 do you see? What might account for these trends?

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Economics

ISBN: 9781319181949

5th Edition

Authors: Paul Krugman, Robin Wells

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