1) Here are annual values for M2 and for nominal GDP (all figures are in billions of dollars) for the mid-1990s.

1993	3,482.0	$6,657.4
1994	3,498.1	7,072.2
1995	3,642.1	7,397.7
1996	3,820.5	7,816.9
1997	4,034.1	8,304.3

1. A) Compute the velocity for each year.
2. B) Compute the fraction of nominal GDP that was being held as money.
3. C)Whatisyourconclusionaboutthestabilityofvelocityinthisfive-yearperiod?

2)

Here are annual values for M2 and for nominal GDP (all figures are in billions of dollars) for the mid-2000s.

2003	6,055.5	$10,960.8
2004	6,400.7	11,685.9
2005	6,659.7	12,421.9
2006	7,012.3	13,178.4
2007	7,404.3	13,807.5

1. A) Compute the velocity for each year.
2. B)Compute the fraction of nominal GDP that was being held as money.
3. C)Whatisyourconclusionaboutthestabilityofvelocityinthisfive-yearperiod?

3) The following data show M1 for the years 1993 to 1997, respectively (all figures are in billions of dollars): 1,129.6; 1,150.7; 1,127.4; 1,081.3; 1,072.5.

1. A) Compute the M1 velocity for these years. (Nominal GDP for these years is shown in problem 1.)
2. B)Ifyouweregoingtouseamoneytarget,wouldM1orM2havebeenpreferableduringthe1990s?Explainyourreasoning.

4)

The following data show M1 for the years 2003 to 2007, respectively (all figures are in billions of dollars): 1,306.1; 1,376.3; 1,374.5; 1,366.5; 1,366.5

1. A) Compute the M1 velocity for these years. (Nominal GDP for these years is shown in problem 2.)
2. B) If you were going to use a money target, would M1 or M2 have been preferable during the 2000s? Explain your reasoning.