Which measure of money would we most likely use if we were interested in looking at spending in the economy?
A)Hard money
B)M1
C)M2
D)We would not use any of these

Question

Quizplus · Accepted Answer

M1 is the measure of money that includes currency in circulation, demand deposits, and other checkable deposits. It is the most commonly used measure of the money supply when analyzing spending in the economy because it includes the most liquid forms of money and is easily spent or used in transactions.

Which Measure of Money Would We Most Likely Use If