If you ask someone who hasn't taken a course in economics to define the money supply he or she is likely to say something like: "The money supply equals the total amount of paper currency and coins in circulation." Why does the Fed include more than just currency in M1, its narrow definition of the money supply?
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Home » Business » If you ask someone who hasn't taken a course in economics to define the money supply he or she is likely to say something like: "The money supply equals the total amount of paper currency and coins in circulation.