Which measure of the money supply has grown more rapidly

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1. Since the 1960s, which measure of the money supply has grown more rapidly, M1 or M2? Briefly explain why this is the case. Has the growth of M1 been more or less stable than the growth rate of M2?

2. Define liquidity. Rank the following assets in terms of liquidity, from most to least liquid: money market mutual fund, savings account, corporate stock, dollar bill, house, gold bar, checking account.

Reference no: EM131305549

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