Problem
From September of 1977 to September of 1978, the Fed expanded Mx by 7.6 percent and M2 by 8.4 percent. Over the following nine months, Mt grew by only 3.2 percent and M2 by 6.0 percent. Consult the Federal Reserve Bulletin to see what happened to interest rates, prices, and unemployment during the last half of 1979. According to the monetarist, what should have happened to interest rates, prices, and unemployment, following these developments? Were the events of the real world consistent with monetarist theory?
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.