The Fed's current position towards the existing monetary aggregates is
A) it is convinced that M1 is the best measure of the money supply.
B) it is convinced that M2 is the best measure of the money supply.
C) it is an issue of ongoing research.
D) it is reverting to considering currency alone as the best measure of the money supply.

Question

Quizplus · Accepted Answer

The Fed's position towards the existing monetary aggregates is an issue of ongoing research. While M2 has traditionally been the preferred measure, there is ongoing debate about the relevancy and accuracy of these measures in today's economy, particularly with the increasing use of technology and electronic transactions. Therefore, the Fed continues to research and evaluate the effectiveness of different measures of the money supply.

The Fed's Current Position Towards the Existing Monetary Aggregates Is