Question

In: Economics

The money stock in the economy is a. the amount of wealth accumulating in the economy,...

The money stock in the economy is
a. the amount of wealth accumulating in the economy, such as curreney and demand deposits 
b, the amount of wealth accumulating in the economy, such as money market mutual funds and stocks.
c. the quantity of money circulating in the economy, such as currency and demand deposits.
d. the quantity of money circulating in the economy, such as money market mutual funds and stocks

Solutions

Expert Solution

The term money stock in the economy means the money supply available and includes liquid money such as currency and demand deposits.

option(C)

The quantity of money circulating in the economy such as currency and demand deposits.


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