04-14-2011, 12:03 AM
[B]What is the main characteristic that distinguish the different money aggregate definitions?
ANS
Liquidity
b)
Which money aggregate definition is mostly used in economic decision around the world?
ANS:
M2
c)
Justify answer given against part-b.
(provide only one reason)
Ans:
M2 is the strong relation between economic growth and interest rate.M2 is a key economic indicator used to forecast inflation. [/B]
ANS
Liquidity
b)
Which money aggregate definition is mostly used in economic decision around the world?
ANS:
M2
c)
Justify answer given against part-b.
(provide only one reason)
Ans:
M2 is the strong relation between economic growth and interest rate.M2 is a key economic indicator used to forecast inflation. [/B]