Go to the St. Louis Federal Reserve FRED databaseand find data on the M1 money supply (M1SL) andthe 10-year treasury bond rate (GS10). Add the twoseries into a single graph by using the “Add DataSeries” feature. Transform the M1 money supplyvariable into the M1 growth rate by adjusting theunits for the M1 money supply to “Percent Changefrom Year Ago.”a. In general, how have the growth rate of theM1 money supply and the 10-year treasurybond rate behaved during recessions andduring expansionary periods since the year2000?b. In general, is there an obvious, stable relationship between money growth and the10-year interest rate since the year 2000?c. Compare the money growth rate and the10-year interest rate for the most recentmonth available to the rates for January2000. How do the rates compare?
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
Go to the St. Louis Federal Reserve FRED database
and find data on the M1 money supply (M1SL) and
the 10-year treasury bond rate (GS10). Add the two
series into a single graph by using the “Add Data
Series” feature. Transform the M1 money supply
variable into the M1 growth rate by adjusting the
units for the M1 money supply to “Percent Change
from Year Ago.”
a. In general, how have the growth rate of the
M1 money supply and the 10-year treasury
bond rate behaved during recessions and
during expansionary periods since the year
2000?
b. In general, is there an obvious, stable relationship between money growth and the
10-year interest rate since the year 2000?
c. Compare the money growth rate and the
10-year interest rate for the most recent
month available to the rates for January
2000. How do the rates compare?
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