Question

Go to www.federalreserve.gov/releases/h6/Current/ to access the information. 1. Answer these questions about the money supply. a. Differentiate between M1 and M2 b. What has been the growth rate in M1 and M2 over the last twelve months? c. From what you know about the state of the economy, does this seem expansionary or restrictive? Why?

Answer 1

Step-by-step explanation:

Note, M1 and M2 represents the value of the United States money supply.

According to information found on the Federal Reserve website, the growth rate in M1 and M2 over the last twelve months for

M1= 38.1

M2= 23.3

They are expansionary considering the effect of the pandemic on the economy.