Answered

Explore Westonci.ca, the leading Q&A site where experts provide accurate and helpful answers to all your questions. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.

if the federal reserve decided to include virtual money like bitcoins in its measure of the money supply, what would be the effect on m1 or m2?

Sagot :

Parrain

If the Fed decided that virtual money should be included in money supply, we would see a situation where both M1 and M2 increase/ rise.

M1 is:

  • The most liquid money instruments
  • Inclusive of cash and close instruments

If virtual money was counted as money, it would increase M1 because virtual money is very liquid as it can easily be converted to cash so it would be counted as M1.

M2 would increase because M1 is part of M2.

In conclusion, both M1 and M2 would increase.

Find out more about M1 and M2 at https://brainly.com/question/25458814.

Thanks for using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.