In the model of the money supply process for M2, the relationship between checkable deposits and the M2 money supply is represented by
A) D = 1/(1+c+t+mm) × M2.
B) D = (1 + c + t + mm) × M2.
C) M2 = × D.
D) M2 = .
Answer: A
In the model of the money supply process for M2, the relationship between checkable deposits and the M2 money supply is represented by
A) D = 1/(1+c+t+mm) × M2.
B) D = (1 + c + t + mm) × M2.
C) M2 = × D.
D) M2 = .