During the late 1980s, which measure gained importance to the Fed?

Question

Quizplus · Accepted Answer

During the late 1980s, the Federal Reserve started to pay more attention to M2 as a measure of the money supply. M2 includes a broader set of financial assets, including savings deposits, small time deposits, and money market deposit accounts, in addition to all the components of M1 (which is primarily currency and checking accounts). The shift towards M2 was due to its ability to provide a more comprehensive view of the money supply and its potential impacts on the economy, especially in terms of inflation and economic growth.

During the Late 1980s, Which Measure Gained Importance to the Fed