Economics 14th Edition by James Gwartney,Richard Stroup, Russell Sobel ,David Macpherson

Exercise 4

How rapidly has the money supply (M1) grown during the past twelve months? How rapidly has M2 grown? Do you think the monetary authorities should increase or decrease the growth rate of the money supply during the next year? Why? (The data necessary to answer this question are available at the Web site of the Federal Reserve Bank of St. Louis, http://www.stls.frb.org.)