In April 2009, year-over-year the growth rate of M1 fellto 6.1%, while the growth rate of M2 rose to 10.3%. InSeptember 2013, the growth rate of the M1 money supply was 6.5%, while the growth rate of the M2 moneysupply was about 8.3%. How should Federal Reservepolicymakers interpret these changes in the growthrates of M1 and M2?
In April 2009, year-over-year the growth rate of M1 fellto 6.1%, while the growth rate of M2 rose to 10.3%. InSeptember 2013, the growth rate of the M1 money supply was 6.5%, while the growth rate of the M2 moneysupply was about 8.3%. How should Federal Reservepolicymakers interpret these changes in the growthrates of M1 and M2?
Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter14: Modern Macroeconomics And Monetary Policy
Section: Chapter Questions
Problem 6CQ
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In April 2009, year-over-year the growth rate of M1 fell
to 6.1%, while the growth rate of M2 rose to 10.3%. In
September 2013, the growth rate of the M1 money supply was 6.5%, while the growth rate of the M2 money
supply was about 8.3%. How should Federal Reserve
policymakers interpret these changes in the growth
rates of M1 and M2?
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