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Answer on Economics of Enterprise Question for Jennifer

Question #5913
How do you determine the size of the M1 money supply for currency 700 billion?
Expert's answer
M1 is a category of the money supply that includes all physical money such as coins and currency; it also includes demand deposits, which are checking accounts, and Negotiable Order of Withdrawal (NOW) Accounts.
In our case the size of M1 will be equal to the amount of currency: M1 = 700 billion.

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