Economics: Principles, Problems, and Policies, 19th Edition

by McConnell, Campbell R.; Brue, Stanley L.; Flynn, Sean M.

Published by McGraw-Hill Education

ISBN 10: 0073511447

ISBN 13: 978-0-07351-144-3

Chapter 31 - Money, Banking, and Financial Institutions - Problems - Page 654: 1a

Answer

$M1=2,240$ million dollars

Work Step by Step

Recall that M1 consists of currency and checkable deposits. Using this definition, M1 in Ironmania consists only of Federal Reserve notes in circulation, the currency in commercial banks, the checkable deposits, and the coins in circulation. Summing all of these up, we get $(700+40)+1500=2240.$

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