Table 172
Below Is a List of Countries with Their 1979

Essay

Table 17.2
Below is a list of countries with their 1979 "excess monetary growth*" ( along with their mid -1980 inflation rate).
*Excess monetary growth is the extent to which money supply growth exceeds to the growth of constant dollar GNP; specifically, the ratio of 1979 M2 to 1978 M2 is divided by the ratio of 1979 real GNP to 1978 real GNP.
-Use Table 17.2 to solve the following:
a. Calculate the correlation coefficient.
b. What is the proportion of the total variation in inflation rate that is explained by excess monetary growth?
c. Test the null hypothesis that $\mathrm{Q}=0.3$ at $\alpha=0.01$ .
d. Calculate a $99 \%$ confidence interval for $\mathrm{Q}$ .