Real-Time Data Analysis Exercise* *Real-time data provided by Federal Reserve Economic Data (FRED), Federal Reserve Bank of Saint Louis. The table shows the quantities of M1, M2, and their components in August 2021 and August 2022. In the year to August 2022, M1 grew by percent and M2 grew by percent. Answer to the nearest 1 decimal place. Two Measures of Money: August 2021 andAugust 2022 M2 Retail money market funds Small time deposits M1 Demand deposits Other liquid deposits Currency Amount (billions of dollars) August 2021 August 2022 20,853.4 21.711.4 977.9 128.9 19,746.5 4,489.6 13,172.1 2,084.9 1,096.3 162.2 20,452.9 5,231.3 13,043.0 2,178.5
Real-Time Data Analysis Exercise* *Real-time data provided by Federal Reserve Economic Data (FRED), Federal Reserve Bank of Saint Louis. The table shows the quantities of M1, M2, and their components in August 2021 and August 2022. In the year to August 2022, M1 grew by percent and M2 grew by percent. Answer to the nearest 1 decimal place. Two Measures of Money: August 2021 andAugust 2022 M2 Retail money market funds Small time deposits M1 Demand deposits Other liquid deposits Currency Amount (billions of dollars) August 2021 August 2022 20,853.4 21.711.4 977.9 128.9 19,746.5 4,489.6 13,172.1 2,084.9 1,096.3 162.2 20,452.9 5,231.3 13,043.0 2,178.5
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Transcribed Image Text:Real-Time Data Analysis Exercise*
*Real-time data provided by Federal Reserve Economic Data (FRED), Federal Reserve Bank of
Saint Louis.
The table shows the quantities of M1, M2, and their components in August 2021 and
August 2022.
C
In the year to August 2022, M1 grew by percent and M2 grew by percent.
Answer to the nearest 1 decimal place.
Two Measures of Money:
August 2021 andAugust 2022
M2
Retail money
market funds
Small time deposits
M1
Demand deposits
Other liquid
deposits
Currency
Amount (billions of dollars)
August 2021
August 2022
20,853.4
21,711.4
977.9
128.9
19,746.5
4,489.6
13,172.1
2,084.9
1,096.3
162.2
20,452.9
5.231.3
13,043.0
2,178.5
Expert Solution
Step 1
M1 money supply incorporates those monies that are very liquid like cash, checkable (demand) deposits, and traveler's checks M2 money supply is less liquid in nature and incorporates M1 adding savings, time deposits, certificates of deposits, and money market funds.
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