In the money index used by the Bank of Canada: M = X₁+ X₂+ ... + X_n, the Xs are ________. A) the proportional weights for calculating M B) the increasing weights in calculating M C) the n monetary components of M D) the decreasing weights in calculating M

Question

Quizplus · Accepted Answer

The Xs in the money index formula represent the n monetary components that are summed to calculate the total money supply, M.

In the Money Index Used by the Bank of Canada