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Currency is M1

2007-06-24 15:30:42 · answer #1 · answered by Giggly Giraffe 7 · 0 0

When Govt. prints money and use that money to buy good and services or give some people to buy, the currency with the public increases. Currency with the paublic is part of all concepts of money. But if the public does not like to hold currency as much as the Govt prints currency, printing of money will amount to increase in bank deposits. And, bank deposits (AT LEAST THE MOST LIQUID PART OF IT) are also part of diferent measures of money M1, m2 ETC.

2007-06-25 05:51:10 · answer #2 · answered by sensekonomikx 7 · 0 0

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