Macroeconomics-Unit 8 Bu204

|KAPLAN UNIVERSITY |

|UNIT 8 ASSIGNMENT: |

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|Money, Banking, and the Federal Reserve System |

|& Monetary Policy |

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|BU204 Macroeconomics |

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April 18, 2010

Chapter 13

Problem 3

YEAR M1 M2 CiC % M1 CiC % M2

1995 $1,127.1 $3,641.3 33.0% 10.2%

1996 $1,079.4 $3,816.7 36.5% 10.3%

1997 $1,072.6 $4,031.8 39.6% 10.5%

1998 $1,096.1 $4,383.9 42.0% 10.5%

1999 $1,124.0 $4,648.7 46.1% 11.1%

2000 $1,088.0 $4,932.6 48.9% 10.8%

2001 $1,179.3 $5,448.2 49.4% 10.7%

2002 $1,217.2 $5,794.3 51.5% 10.8%

2003 $1,293.4 $6,062.4 51.3% 11.0%

2004 $1,363.1 $6,397.7 51.3% 10.9%

The trend is inflationary....