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The Federal Reserve, is the gatekeeper of the U.S. economy. There is too much money in circulation to get an accurate amount.

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Q: Why is it difficult for the Fed to get an accurate measure of the money supply?
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Do you have supply of money in India ppt?

there are four measure of money supply in india,


Which diagram provides an accurate example of how the government uses open market operations?

the money supply is increased


Why has measuring the money supply become more difficult in recent year?

The U.S. Congress continuing the process of decreasing the independence of the Fed.


What is the narrowest measure of the money supply developed by the Federal Reserve System in the US?

Called M1. It's the measure of cash and deposits on hand (things that can be quickly converted to cash).


How does raising the discount rate affect the money supply?

Decreases the money supply


What factors determine money supply?

factors which determine money supply is: open market operations, variable money supply bank rate policy.


What effect does an increase in the money supply have on inflation?

An increase in the money supply shifts the money supply curve to the right. If you look on your graph, you will see that an increase in money supply will cause the interest rate to decrease. Here's why: Fed increases money supply-->excess supply of money at the current interest rate -->people buy bonds to get rid of their excess money-->increase in the prices of bonds --> decrease in the interest rate.


What if there is an increase in the money supply that causes prices to rise and leads to inflation what happens to money?

If there is a increase in money supply that is causing price to rise money only does one thing. The money that is taking is used for supply.


If there an increase in the money supply that causes prices to rise and leads to inflation what happens to money?

If there is a increase in money supply that is causing price to rise money only does one thing. The money that is taking is used for supply.


If there is an increase in the money supply that causes prices to rise and leads to inflation what happens to the money?

If there is a increase in money supply that is causing price to rise money only does one thing. The money that is taking is used for supply.


If there is an increase in the money supply that causes prices to rise and leads to inflation what happens to money?

If there is a increase in money supply that is causing price to rise money only does one thing. The money that is taking is used for supply.


What are the Components of money supply?

money supply has three components which are; M0,M1 and M2