What would happen to the values of m1 and m2

Reference no: EM131023247

[Calculating M1 from data on M2] Go to the Web site of the Federal Reserve Bank of St. Louis (FRED) (research .stlouisfed.org/fred2/) and find the most recent values for the following four variables(1) the M2 Money Stock (M2), (2) the Total Savings Deposits at all Depository Institutions (SAVINGS), (3) Retail Money Funds (WRMFSL), and (4) Small Time Deposits - Total (WSMTIME).

a. Using these data, calculate the value of M1.

b. What are Retail Money Funds? What percentage of M2 are they?

c. If households were to shift funds from savings accounts to checking accounts, what would happen to the values of M1 and M2?

Reference no: EM131023247

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