Currency $1,250 Large time deposits $3,200 Demand deposits $2,200 Small time deposits $1,400 Treasury bills $5,200 Savings and money market deposit accounts $1,800 Institutional money market mutual funds $4,000 Commercial paper $700 Other checkable deposits $800 Municipal bonds $2,500 1. Go to the Federal Reserve Economic Database. Create a graph which plots the growth in M2 and MZM (the annual percentage change) on a single graph. Cut and paste the graph from FRED that you created. 2. Comment on the behavior of these two monetary aggregates over time, taking note of the following: Do M2 and MZM growth move together? Since 2000, how do M2 and MZM growth behave at the onset of a recession? Excluding the current period (March 2020 to the present), take note of a significant change in M2 and MZM money growth. When was the last large change in these growth rates? In this case, which growth rate changed by more? What does this suggest about how consumers and businesses are using money?

Answer rating: 100% (QA)

I do not have access to external websites like the Federal Reserve Economic Database to create graphs However I can provide you with the necessary inf... View the full answer