Which measure of money would be used to look at spending in the economy?
A) The monetary base
B) M1
C) M2
D) Reserves

Name: Which measure of money would be used to look at spending in the economy? A) The monetary base B) M1 C) M2 D) Reserves
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Question

Quizplus · Accepted Answer

M1 is a measure of money that includes currency, demand deposits, and other liquid assets that can be easily converted into cash. It is often used to look at spending in the economy because it represents the money that is most likely to be used for transactions.

Which Measure of Money Would Be Used to Look at Spending