Match each money supply measure with its economic constituent components:
A1-A, 2-B, 3-C
B1-B, 2-A, 3-C
C1-C, 2-B, 3-A
D1-A, 2-C, 3-B
Answer & Solution
Correct answer: A. 1-A, 2-B, 3-C
M1 is narrow liquid money, M3 adds term deposits, M0 is central bank high-powered reserve money.
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