Question #309711
Which one of the following equations is true?
a. M3 = M1 + M2 + M3
b. M2 = M3 – M1
c. M = C + D
d. M1 = M3 – M2
Expert's answer
Money supply (M) = sum of currency (C) + demand deposits (D).
So, the correct answer is c.
Which one of the following equations is true?
a. M3 = M1 + M2 + M3
b. M2 = M3 – M1
c. M = C + D
d. M1 = M3 – M2
Money supply (M) = sum of currency (C) + demand deposits (D).
So, the correct answer is c.
