AP MacroeconomicsMoney & Monetary Policy
Money Supply
The money supply is the total amount of money circulating in an economy, including cash and checkable deposits.
Central banks influence it through open market operations, the reserve requirement, and the discount rate. Common measures are M1 (most liquid) and M2 (broader). Changes in the money supply affect interest rates and aggregate demand.
Interactive graph
Money Market →
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Study module
Monetary Policy →
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