Assignment
Overview
Complete the following Unit 4 Written Assignment for this unit by the stated due date on the Schedule. Please submit in the Unit 4 Written Assignment Dropbox as a .doc, .docx, .pdf or .rtf file.
Instructions
In this assignment, you will be evaluating data at FRED (Federal Reserve Economic Data). Complete the following items:
1. First, in a paragraph or two, describe what components make up M1, M2 and MZM.
2. Go to the Federal Reserve Bank of Saint Louis [https://research.stlouisfed.org/fred2/categories/25/]
3. Select the data series for the components listed below. Use the Monthly, Seasonally Adjusted data. Set your dates to look at the past 30 years, so you will use dates of 1985 to 2015. To more closely look at trends, feel free to look at it on a one year, five year or ten year basis rather than at all 30 years at once.
· M1 Money Stock
· Currency
· Total Checkable Deposits
· Demand Deposits at Commercial Banks
· Travelers Checks Outstanding
4. Now, in two to three paragraphs, explain what patterns and trends you see in the data for each of these components.
• When did clear changes occur?
• Explain what you feel could have been occurring.
• Which changes could have occurred because of economic events?
• Were there times when people appeared to shift from one aggregate to another?
Make sure you use correct spelling, grammar, etc.