M & B 4th Edition by Dean Croushore

Exercise 7

Get a copy of the latest Federal Reserve Bulletin at your library (or go to the Internet at www.federalreserve.gov ) and fi nd the most recent data on M1 and M2. How have these aggregates been growing in the past year compared with the values in Figure 3.2? If you can, download the data from the Internet, or enter them by hand into a spreadsheet, and see if you can plot the data to compare with Figure 3.2. Can you explain why the growth rates have changed recently?