Question : Question
The following data show M1 for : 5514
The following data show M1 for the years 1993 to 1997, respectively (all figures are in billions of dollars): 1,129.6; 1,150.7; 1,127.4; 1,081.3; 1,072.5.
Compute the M1 velocity for these years. (Nominal GDP for these years is shown in problem
1.) If you were going to use a money target, would M1 or M2 have been preferable during the 1990s? Explain your reasoning.