Plot the ratio of M2 to nominal GDP, and the 3-month Treasury bill rate. Do you see
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Plot the ratio of M2 to nominal GDP, and the 3-month Treasury bill rate. Do you see evidence of a money demand relationship? Explain.
Answer this question using the Federal Reserve Bank of St. Louis’s FRED database, accessible at http://research.stlouisfed.org/fred2/
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Dudhat Vaidehi
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