A broad definition of this quantity includes negotiable order of withdrawals and certificates ofdeposits as well as (*) savings accounts and travelers checks.
In the IS-LM model, the LM function is bounded by the liquidity preference and this other quantity. Ina liquidity trap, fluctuations of this quantity do not correspond to fluctuations in price levels. This quantityis equal to the base times the inverse of the reserve ratio when institutions employ a fractional-reservepolicy. A broad definition of this quantity includes negotiable order of withdrawals and certificates ofdeposits as well as (*) savings accounts and travelers checks. Those various components of this quantity are splitinto groups called M0, M1, and M2, which distinguish between that left in the bank and the amount of this value incirculation. For 10 points, name this value, which can be defined as the total quantity of currency in the economy.
In the IS-LM model, the LM function is bounded by the liquidity preference and this other quantity.
money supply