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The table below presents data for different components of the U.S. money supply in January 2008. Use the information in the table to answer the questions that follow (all values are in billions of dollars):

\begin{tabular}{|c|c|}
\hline
Components & Amount \\
\hline
Currency & \[tex]$758 \\
\hline
Checkable deposits & \$[/tex]615 \\
\hline
Money market account & \[tex]$950 \\
\hline
Savings & \$[/tex]3,868 \\
\hline
Small-denomination time deposits & \[tex]$1,282 \\
\hline
3-Month U.S. Treasury bills & \$[/tex]2,431 \\
\hline
\end{tabular}

In January 2008, the total value of M1 was [tex]$\$[/tex][tex]$ $[/tex]\square[tex]$ billion.

In January 2008, the total value of M2 was $[/tex]\[tex]$[/tex] [tex]$\square$[/tex] billion.

Sagot :

GinnyAnsweridn
To solve the problem, we need to calculate two important measures in the context of money supply, namely M1 and M2, using the given data.

### Step-by-Step Solution:

#### Part 1

Components for M1:
- Currency: \[tex]$758 billion - Checkable deposits: \$[/tex]615 billion

Formula for M1:
[tex]\[ M1 = \text{Currency} + \text{Checkable deposits} \][/tex]

Calculation for M1:
[tex]\[ M1 = 758 + 615 \][/tex]
[tex]\[ M1 = 1373 \][/tex]

So, the total value of M1 in January 2008 was \[tex]$1373 billion. #### Part 2 Components for M2: - M1 (already calculated): \$[/tex]1373 billion
- Money market account: \[tex]$950 billion - Savings: \$[/tex]3868 billion
- Small-denomination time deposits: \[tex]$1282 billion Formula for M2: \[ M2 = M1 + \text{Money market account} + \text{Savings} + \text{Small-denomination time deposits} \] Calculation for M2: \[ M2 = 1373 + 950 + 3868 + 1282 \] \[ M2 = 7473 \] So, the total value of M2 in January 2008 was \$[/tex]7473 billion.

### Summary:
1. In January 2008, the total value of M1 was \[tex]$1373 billion. 2. In January 2008, the total value of M2 was \$[/tex]7473 billion.
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