Short answer problems about Money supply, Currency, Mutual funds, Interest rate and Expected rate of inflation.
1. For each of the following assets, which of the monetary aggregates (M1 and M2) includes them:
(b) Money market mutual funds
(c) Small-denomination time deposits
(d) Checkable deposits
2. Illustrate what is the real rate of interest if the nominal rate of interest is 11 percent and the expected rate of inflation is 4 percent?