1. Consider the following table with data about monetary aggregates (billions of dollars, seasonally adjusted data): Date May 2012 Nov. 2012 Feb. 2013 May 2013 M1 2,262.6 2,405.5 2,477.9 2,534.7 M2 a) Calculate the annualized growth rate of M1 and M2 for the following periods: May 2012 May 2013 (one year), Nov. 2012-May 2013 (six months), and Feb. 2013-May 2013 (three months). b) Comment on the growth rates of these monetary aggregates. 9,870.3 10,298.3 10,424.7 10,598.9 Source: Federal Reserve System (H.6)

1. Consider the following table with data about monetary aggregates (billions of dollars, seasonally adjusted data): Date May 2012 Nov. 2012 Feb. 2013 May 2013 M1 2,262.6 2,405.5 2,477.9 2,534.7 M2 a) Calculate the annualized growth rate of M1 and M2 for the following periods: May 2012 May 2013 (one year), Nov. 2012-May 2013 (six months), and Feb. 2013-May 2013 (three months). b) Comment on the growth rates of these monetary aggregates. 9,870.3 10,298.3 10,424.7 10,598.9 Source: Federal Reserve System (H.6)

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter13: Money And The Banking System

Section: Chapter Questions

Problem 18CQ

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