Question

Which of the following correctly calculates the
money supply with M2?
A. M2 + M3
B. M2-M1
C. M2 + M1

Answer 1

Answer:

I think it's C.

Explanation:

I could be wrong, but this is my understanding. M3 equals the sum of all money in the economy. To get M3, you add M2 and M1. So, this would be the correct way to calculate the money supply with M2.