Question

Money Supply FRED 15,600 -M2 Money Stock 15.400 15.200 15.000 14.800 Billions of Dollars 14,600 14.400 14,200 14.000 13,800 2018-01 2019-01 2018-09 2018-05 2019-09 2019-05 2020-01 Source: Board of Governors of the Federal Reserve System myf.red/g/qbzP are injecting money into economy to keep interest rates at a healthy rate. (Paragraph 1 & 2)

Explain X and Y of this graph, and why it is rising.

Answer 1

This graph shows the overtime amount of US money supply M2. The M2 consists of currency, checking deposit, time deposit, and other near money convertibles. This graph tracks the amount of M2 money supply in the US over the time period from January 2018 to January 2020. The graph is rising because the M2 money supply has increased from one period to another. The X-axis measures the time and Y-axis measures the amount of M2 money supply. Any point on the graph denotes the amount of money supply available at the corresponding period of time.