1.For each of the following assets, suggest which of the monetary aggregates (M1, M2, M3) includes them:

a. Currency

b. Money market mutual funds

c. Eurodollars

d. Small-denomination time deposits

e. Large-denomicountry repurchase agreements

f. Checkable deposits

2. Why are revisions of financial aggregates much less of a difficulty for measuring long-run activities of the money supply than they are for measuring short-run movements? 3. Would a dollar tomorrow be worth even more to you now when the interemainder rate is 20% or once it is 10%?

 




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Mar 10 2021 07:14 AM

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Joseph M answered on March 12, 2021
5 Ratings, (17 Votes)
1a.money....M1 B.money industry mutual funds... M2C.Eurodollars ..M3 D.tiny denomicountry time deposits...M1E.large denomicountry repurchase agreement...M2F.checkae deposits M12.in the long...
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