Question

money supply is a stock variable....is it true or false​

Answer 1

Answer:

false

Explanation:

if we work monthly or yearly we get some amount of money

Answer 2

In Macroeconomics,money supply is a stock variable.Therefore,the correct answer is True.

Explanation:

A stock variable basically means that the variables can be measured at any single moment in time and is not continuously varying or fluctuating.In contrast,a flow variable implies that any economic variable is consistently fluctuating or adjusting and cannot measured at any single moment in time.Money supply is a macroeconomic instrument of the government(especially central bank) of any country to stabilize the overall economic condition.It is commonly considered as money reserve of the central bank which is not not always or constantly.It is only used under macroeconomic instability in the country when the Central bank adjust the money supply to stimulate the economy or facilitate economic growth.Hence,it can be measured at a certain point in time and is not constantly changing.