Given the following information,what are the
A)M1 = $4,310 billion,M2 = $6,285 billion.
B)M1 = $2,050 billion,M2 = $9,985 billion.
C)M1 = $2,110 billion,M2 = $8,485 billion.
D)M1 = $3,610 billion,M2 = $9,985 billion.

Question

Given the following information,what are the 
A)M1 = $4,310 billion,M2 = $6,285 billion. 
B)M1 = $2,050 billion,M2 = $9,985 billion. 
C)M1 = $2,110 billion,M2 = $8,485 billion. 
D)M1 = $3,610 billion,M2 = $9,985 billion.

Quizplus · Accepted Answer

The size of M2 suggests that the economy is large, and given the relatively low M1/M2 ratio, it can be inferred that the velocity of money is relatively high. Out of the given options, Choice C is the only one that fits this description, with a moderate M2 size and a moderately low M1/M2 ratio. The other choices either have a much larger M2 size or a much lower M1/M2 ratio, which would not be consistent with a high velocity of money.

Given the Following Information,what Are the