Economics 11

Spring 2005

Due Wednesday April 6 Homework 8

Ch 14

Problem 2, 4, 5

_________________________

Ch 16

Problems 4, 6, 7, 9

Go to the St. Louis Federal Reserve site called FRED II at http://research.stlouisfed.org/fred2/

Click on Monetary Aggregates

Click on Demand Deposits at Commercial Banks (There are several choices. Use the seasonally adjusted (SA) and the weekly (W) series)

On your homework answer sheet, print out the graph that you see (Right click in the graph, hit Copy, then Paste it into your homework)

Now answer this question: There a big spike in the graph. When did the demand deposit component of M1 jump (you can download the data to help you answer this question)? Why do you think that happened?