Thursday, Mar 15, 2007
M1, M2, M3, M4 - not just UK motorways- ways to measure supply of money in circulation
Wikipedia: Money Supply - definition
Money supply ("monetary aggregates", "money stock"), a macroeconomic concept, is the quantity of money available within the economy to purchase goods, services, and securities. The money supply affects the interest rates. The two are related inversely, such that, as money supply increases interest rates will fall. When the interest rate equates the quantity of money demanded with the quantity of money supply, the economy is working at the money market equilibrium.
Posted by lvmreader @ 06:05 PM (267 views) Add Comment
1 Comment
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1. Kanwar16 said...
get me more information about m1,m2,m3,m4.