In the model of the money supply process for M2, the relationship between checkable deposits and the M2 money supply is represented by

In the model of the money supply process for M2, the relationship between checkable deposits and the M2 money supply is represented by




A) D = 1/(1+c+t+mm) × M2
B) D = (1 + c + t + mm) × M2
C) M2 = 1/(1 + c + t + mm)× D
D) M2 = (rr+c+t+mm)/D



Answer: A