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According to data, the U.S. money stock stands at about $1.1 trillion dollars. If we divide that by 245 million, the approximate number of adults in the U.S., we should each be holding about $4,490 in cash. But we are not. What explains this? a. This shows that the Fed has no idea how much cash is really in circulation. Ob. If they included children in the population count, it would be correct. Oc. The answer is cryptocurrency, which bumps up the amount of cash in the money supply. Od. People outside the US hold dollars, and some in the US operate all cash businesses, so they use more than the average.

According to data, the U.S. money stock stands at about $1.1 trillion dollars. If we divide that by 245 million, the approximate number of adults in the U.S., we should each be holding about $4,490 in cash. But we are not. What explains this? a. This shows that the Fed has no idea how much cash is really in circulation. Ob. If they included children in the population count, it would be correct. Oc. The answer is cryptocurrency, which bumps up the amount of cash in the money supply. Od. People outside the US hold dollars, and some in the US operate all cash businesses, so they use more than the average.

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter21: The Monetary System
Section: Chapter Questions
Problem 12PA
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According to data, the U.S. money stock stands at about $1.1 trillion dollars. If we divide that by 245 million, the approximate number of adults in the U.S., we should each be holding about $4,490 in cash. But we are not. What explains this? a. This shows that the Fed has no idea how much cash is really in circulation. b. If they included children in the population count, it would be correct. Oc. The answer is cryptocurrency, which bumps up the amount of cash in the money supply. Od. People outside the US hold dollars, and some in the US operate all cash businesses, so they use more than the average.
Transcribed Image Text:According to data, the U.S. money stock stands at about $1.1 trillion dollars. If we divide that by 245 million, the approximate number of adults in the U.S., we should each be holding about $4,490 in cash. But we are not. What explains this? a. This shows that the Fed has no idea how much cash is really in circulation. b. If they included children in the population count, it would be correct. Oc. The answer is cryptocurrency, which bumps up the amount of cash in the money supply. Od. People outside the US hold dollars, and some in the US operate all cash businesses, so they use more than the average.
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