Scenario 14-1
Currency $1,000
Checking Account Balances 2,000
Savings Account Balances 5,000
Small-Denomination Time Deposits 6,000
Norinstitutional Money Market Fund Shares 7,000
Consider the information above for a simple economy. Assume there are no traveler's checks.
Refer to Scenario 14-1. M2 in this simple economy equals
A. $3,000.
B. $8,000.
C. $14,000.
D. $21,000.
