Table 21-1.The information in the table pertains to an imaginary economy.

-Refer to Table 21-1.What is the M2 money supply?
A) $125 billion
B) $296 billion
C) $351 billion
D) $431 billion

Question

Table 21-1.The information in the table pertains to an imaginary economy.
 
-Refer to Table 21-1.What is the M2 money supply?
A) $125 billion 
B) $296 billion 
C) $351 billion 
D) $431 billion

Quizplus · Accepted Answer

M2 money supply includes currency, demand deposits, savings deposits, small time deposits, and money market mutual funds held by individuals and institutions. Adding up the values in each of these categories yields a total M2 money supply of $351 billion in this imaginary economy.