Plot rates of growth in m-one and in real gdp, Macroeconomics

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Plot rates of growth in m-one and in real gdp

Problem

1. Plot the ratio of M2 to nominal GDP, and the three month Treasury bill rate. Do you see evidence of a money demand relationship? Explain.

2. Plot rates of growth (over a year) in M1 and in real GDP. What do you see in your chart? Can you make sense of what you see by using the theory developed in this chapter?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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